We thought we were finished seeing 1000-point moves in the Dow 30. Just when things were settling down, Fed Chairman Powell threw a hand grenade at investors last week, reminding markets that we are not out of the woods yet. His sentiments were not actually...
The stock market is not the economy (and it has never been more true). The markets are experiencing a moment of optimism after suffering the sharpest drop into a bear market in history. The magnitude of the recent price gains seems to be very optimistic...
What did the stock market do last week as the Economic Uncertainty Index hit an all-time high? Rally more than 12% of course! Signs of a plateau in the outbreak of the COVID-19 virus both here and around the world were the primary drivers of last week’s gains...
The coronavirus is a rare ‘black-swan’ event – an event that is unexpected and unknowable. It was the match that ignited the market tinderbox. The richly valued market was priced to perfection with expectations for another good year in 2020. Those expectations came...
We are only halfway through February, but so far 2020 looks like a repeat of 2019. How so? Large caps are outperforming small caps, growth is outperforming value, tech is the best performing sector, and the U.S. is outperforming international (for about ten years...
Sentiment affects valuations: Last year’s big rise in the S&P 500 was sparked more by optimism and rising sentiment (which resulted in higher P/Es) than earnings growth. Can we get another strong year of stock market performance based on rising sentiment? ...
