When weather forecasts are inaccurate, we can usually change our plans with little consequence in the greater scheme of things. When economic forecasts are inaccurate, however, the consequences may be more significant. While making financial decisions does involve some guesswork, an educated guess—even with elements of uncertainty—may be better than making a decision with no forecast at all.
If you ever have the inkling to manage your investments on your own, that inkling is worth reconsidering. Do-it-yourself investment management is generally a bad idea for the retail investor for myriad reasons.
THE MONTH IN BRIEF May was another good month for stocks. The S&P 500 gained more than 1%, putting its YTD advance above 7.7%. While the housing market showed some spring weakness, hiring bounced back and most other important economic indicators did not falter. Wall Street seemed little […]
The Federal Reserve has raised interest rates three times since the financial crisis in 2008, and many believe that this trend will continue. In a rising-interest rate environment such as this, bond values generally tend to decrease in the short-term. When inflation rises, the Fed generally raises interest […]
THE MONTH IN BRIEF In April, investors kept one eye on impressive corporate earnings and another on geopolitical developments in Asia and Europe. Earnings ultimately drew the most attention – the Dow Jones Industrial Average rose more than 1% for the month, while the Nasdaq Composite added more […]
For investors keeping a watch on the stock market and their portfolios recently, there might be questions regarding the decision to diversify. U.S. stocks have been steadily increasing since the election, which should mean good news for an investor’s portfolio. Unfortunately, bonds, gold, and many other assets have […]
The effects of climate change have been heavily represented in the news over the last few years, but has its impact on agricultural investments been fully considered? The impact of climate change on certain crops could make agribusiness a strong long-term investment option. There are two factors that need […]
The following information includes a synopsis of the data found in a report by McKinsey Global Institute called “Digital Globalization.” This article only contains some of the information in that report, and we encourage you to delve deeper into it if you are interested in knowing more. There […]
Morningstar is a big name in the investment industry. Their “star” system of rating investments is one of the most widely used, yet misunderstood, rating systems. Unfortunately, Morningstar’s fiduciary advice follows in similar footsteps. The company has admitted that their star system is not a strong indicator of […]
Research by Eugene Fama and other financial academics has offered evidence that the bond markets are efficient and that interest rates and bond prices do not move predictably. This appears to be the case with all types of issues, from short-term government instruments to long-term corporate bonds. This […]