What’s Going On in the Markets?

It may be time to diversify – if that was not already the name of your game.

When is the last time that BONDS, no less the 10-year Treasury and TIPS, were the information we sought to read before we checked TSLA and AAPL??

Yes, when stock markets get rocky it is wise to look to the bond market, interest rates and the Fed for answers. Here is a less than 2-minute primer on several terms that matter. Oh, and my bond expert and bond trader friends will smile at the following statement: Everyone knows the “bond gals and guys” are smarter than the “equity gals and guys.” (PS. I started out as an equity gal.)

When stock markets get rocky it is wise to look to the bond market, interest rates and the Fed for answers.

Continue reading “What’s Going On in the Markets?”

Get Ready for Corona Inflation

A quick post, as today’s message presents a challenging fact. Sometimes the truth hurts and better on a Friday than a Monday! Keep reading, though, for an inspiring conclusion.

Fact: Prices for discretionary (and non-discretionary) items are about to go UP. All one needs to look at is the spike in residential home prices that began in mid-2020 and is still going. Demand for suburban homes has skyrocketed due to the work-from-home and leave-big-cities trends, among other major factors. As learned in high school and college economics, as demand increases generally so do prices.

Travel and hotels will probably see the most noticeable price increases post Covid.

Photo courtesy of Sean Sullivan, https://smsullivanphotography.com/. Cruz Bay, St. John USVI.

Continue reading “Get Ready for Corona Inflation”

Weekend Edition – Markets’ Response to Crisis

As we all “shelter in place” and our kids are in “cyber school” we take in news both of the day and of the bigger picture. Here are several personal financial-related cautionary thoughts and a quick graphic (see below). People way smarter than I say that data is key to decision-making and the ability to stick with a plan in crisis situations.

unnamed

Continue reading “Weekend Edition – Markets’ Response to Crisis”

“What Ifs” of 2020 and Beyond

After a year – really a decade – of excellent returns in the stock market, and for 2019 in the stock AND bond markets, it makes sense to ask, “WHAT IF?” As in, what if certain events take place in the markets or economy that could spoil the last several years of positive portfolio returns? Naturally then, there would be a handful of guesses or responses to the “what if” questions.

apple devices books business coffee
What if certain events take place in the markets or economy that could spoil the last several years of positive portfolio returns?

Continue reading ““What Ifs” of 2020 and Beyond”

Inflation Revisited

This edition of TGIF 2 Minutes originally ran on February 16, 2018 just after the (now) temporary 12% decline in the Dow Jones, which ended as a 6% decline for the month.

Typically, I do not get too far “into the weeds” of technical terms in my TGIF 2 Minutes messages. However – this has not been a typical last two weeks in the markets – at least not “typical” as defined by the past several years of gradually UP markets (and portfolios) month after month. Thus, a short walk into the weeds to talk a little about inflation is warranted – and may shed light on the volatility we have experienced lately with more likely to come over the next months and year or so.

Falcon Heavy 2-5
Photo by Jared Haworth, http://www.wehadtoday.com/jared

See this visual of a rocket launch* – and not just any rocket launch, the Falcon Heavy launch as photographed by a friend of mine with years of clearance for NASA rocket launches – as an appropriate comparison to what inflation can look like. Continue reading “Inflation Revisited”

Volatility & the Ides of March: What’s Next?

We have already had more volatility in the first three months of 2018 than we saw in ALL of 2017 and most of 2016 combined. Snow? On the first day of Spring!  Driverless cars on the road… What’s next?

The snow wasn’t the worst part of it. Facebook stumbled this week amidst legitimate concerns of how honest it is with protecting its user data. This is not the first time Facebook has faced the issue of deceiving its users: back in 2012 under a decree with the FTC Facebook had to agree to get user consent in order to share users’ personal data with others.

Ides of March
It’s been an interesting March.  What’s next?

Continue reading “Volatility & the Ides of March: What’s Next?”

A Word on Inflation

Typically, I do not get too far “into the weeds” of technical terms in my TGIF 2 minutes messages. However – this has not been a typical last two weeks in the markets – at least not “typical” as defined by the past several years of gradually UP markets (and portfolios) month after month. Thus, a short walk into the weeds to talk a little about inflation is warranted – and may shed light on the volatility we have experienced lately with more likely to come over the next months and year or so.

Also, see this visual of a rocket launch* – and not just any rocket launch, the Falcon Heavy launch as photographed by a friend of mine with years of clearance for NASA rocket launches – as an appropriate comparison to what inflation can look like.

Falcon Heavy 2-5
Photo by Jared Haworth, http://www.wehadtoday.com/jared

Continue reading “A Word on Inflation”