Category: Uncategorized
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Why Stocks Could Rally This Summer
Inflation Stocks have been weak this year due to inflation at 40-year highs. There are signs that inflation is subsiding. As China begins to reopen supply bottlenecks should alleviate creating more supply and driving prices lower. New home sales were down 17% in the latest report. This coupled with interest rates rising is likely to…
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Benefits of Diversification
Reduces volatility In normal market environments the various asset classes don’t move in the same direction at the same time. So, if stocks are going down, commodities may be going up. Maybe bonds may be going down less than stocks, so by being diversified among different asset groups it can reduce the fluctuations in the…
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Stock Performance during Interest Rate increases
The Federal Reserve is expected to begin raising interest rates in March 2022. There is fear among investors about how stocks will perform in this environment. Stocks typically had positive performance in the previous interest rate cycles dating back to 1984. Stocks rose on almost 14% following the first interest rate increase of those periods.…
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Stock Performance After Geopolitical Events
These have been trying times in the market lately. However, despite the concerns that geopolitical events bring, stock performance usually excels after the event. The chart below lists various events along with the performance of the S&P 500 at various points afterwards. As you can see performance on average was usually higher 3, 6 and…