FINANCIaL
FIELd NOTES
Are Fed Rate Cuts Good for Stocks?
During the July Fed meeting, the chair of the Fed, Jerome Powell, said, “If the labor market were to weaken unexpectedly…we are prepared to respond.”
Following that meeting, we had a jump in unemployment that sent the market into an abrupt selloff amid a relatively calm year for markets. The “weakening labor market” that Powell mentioned may very well be here…
Bonds Are Finally Doing Their Job
2022 was one of the most difficult years for diversified portfolios because both stocks and bonds sold off significantly.
For investors, this was very concerning since it reduced the benefits of being diversified in the first place. However, it’s important to note that bonds often protect in a down market. In fact, in all but three years when stocks (S&P 500) were down, bonds (5-year treasuries) were up. 2022 was one of those three years—and the worst one at that…
Should You Be Worried About “The Death of the US Dollar?”
One question I’ve been hearing more recently is, “Will the US dollar collapse in the future?” It’s a fair question, given the rising levels of debt in the US and the rise of other alternative currencies (Euro, Yen, and digital currencies as of late).
No fiat currency has lasted forever across history, and I suspect the US dollar will be no exception, given enough time. But how high is the risk that we could face the “death of the dollar” during our lifetime? Let’s take a closer look.
Putting the Recent Market Volatility in Perspective
The stock market has had a rough week. As of Friday afternoon, the S&P 500 was about 6% off its high. Other parts of the stock market were down even more – the Nasdaq tech-heavy stocks were down more than 10%…
Earnings Season Is Mostly a Big Show
The financial media gives stock earnings announcements far too much airtime. Don’t get me wrong—earnings drive stock prices over the long run. Earnings matter. But the hamster wheel of quarterly announcements is mostly just a big show. Public companies spend far too much time ensuring the data is presented to the investing public in the best light possible.
After a decade of watching earnings releases, here are a few things I’ve learned about earnings season…
Increasing Healthspan and Lifespan in Retirement
A few years ago, I saw this viral Christmas ad. After ridding myself of the onions nearby, I reflected on why prioritizing health and fitness holds such significance to me.
As my first son turned three, I couldn't help but notice how swiftly time was passing. It dawned on me that he'll probably have his own children someday. If I want to actively engage and play with my grandchildren meaningfully down the road, what I do for my health now matters…