Investors have been whipsawed during late February and early March. Consider the performance of the Dow Jones Industrial Average from February 27th through March 11th of 2020. Investors saw:
- The three largest-one-day-losses in history – February 27th, March 9th and March 11th
- The three largest-o...
In three trading days, the DJIA recorded its biggest one-day point gain and its biggest one-day point loss in its 125-year history.
That’s volatility.
Thursday Was Ugly
By the time the final bell tolled on Thursday, February 27th, stunned investors saw that:
- The DJIA gave back 1,190 points...
The Fed is growing the money supply and that will help the U.S. economy
Since 2015, the Federal Reserve has raised short-term interest rates nine times, including in December 2018, but all that rate-raising came to an end in the summer of 2019.
On Wednesday, July 31st at 2 pm EST, the Fed cut i...
Investors need to remember that the Fed is not the Monster under the bed
One day, the Federal Reserve’s recent run of rate hikes will end – or will continue – and that provokes a lot of investor anxiety. Fortunately, those fears are overblown.
Here is the thing about the Fed: rate hikes and rate...
For many people, investing typically begins with one stock, bond, or mutual fund. Other selections are added over time, because most people understand it is imprudent to invest everything in a single security or fund, even if it has a solid reputation. However, just “spreading money around” in a hap...
The “Power of Common Knowledge” is a good place to start, not an end
It’s an old investing adage: “Buy what you know.”
But that advice has real downsides if you don’t apply it properly. Investing icon Warren Buffett and legendary portfolio fund manager Peter Lynch both advocate that investors p...