Our latest Fed meeting resulted in the committee leaving interest rates alone, in the face of inflation that has dipped from the last meeting. Should we be concerned? Wednesday’s Federal Reserve announcement to leave interest rates unchanged was met with widespread disappointment by the U.S. stock markets, resulting in widespread sell-offs of some significance. By […]
While oil prices have been in an upward trend since late December of last year, tracking the stock markets pretty closely, it is now experiencing its biggest pullback since the rally began. The price of oil and the price of stocks are somewhat positively correlated, but to look at this relationship over the last 6 […]
Apple shared some news which the market after the close Tuesday, with their announcement of their quarterly results, and the market expressed its approval on Wednesday. On a day where stock markets were decidedly negative, nothing stood in the way of the side party that the markets had for Apple on Wednesday. Apple gapped up […]
Just about everyone thinks that the upcoming shortfall in the Social Security balance sheet, which will cause it to become bankrupt, is solely because of changing demographics. The Baby Boomer generation is starting to retire, and this will certainly place a larger and larger load upon the Social Security system, resulting in the amounts paid […]
Price to earnings is relied upon by a lot of people in deciding a stock’s outlook. The idea is to hope that we’ll get a reversion to the mean. This isn’t how stocks work though. We have a natural tendency to want to oversimplify things, and this certainly extends to how we view the movement […]
The stock market hasn’t shown any real signs of slowing down, but in a survey of money managers, their confidence in the current market is getting a little rattled lately. We might think that this year’s rally, which wiped out the losses that the market suffered in the latter part of 2018, might have money […]
Investors often worry about risk, but many don’t think about it too much unless they have already been exposed to a lot of it. We always want to be aware of such things. A very popular approach to risk management among individual investors is to just choose to ignore it, and even approach this ignorance […]
The first thing people may have thought when they saw the U.S. first quarter GDP come in so much higher than expected is that this may be alarming. We need not worry. There are some smaller creatures that, when faced with a threat, will puff themselves up to appear bigger than they actually are. This […]
While there is much speculation on whether Chevron or Occidental will win the bid to take over Anadarko Petroleum, you can’t just necessarily go by the size of the bids. Takeover bids with companies aren’t always decided by the size of a company’s offer, and it just may not be in the case of Chevron […]
After a terrible 2018 which saw 3M stock lose 20%, 2019 was shaping up much better, until Thursday that is. The stock lost most of their 15% year to date gain on a single day. It’s usually not nice to disappoint the street with your earnings estimates. Current estimates become digested by the market so […]