For heavily taxed investors, the benefits of holding onto their investments as long as they continue to grow and compound are significant. Selling investments triggers taxes, which reduce the amount of capital available for reinvestment. As a result, the new…
The market’s strongest stocks often set the tone for the rest. Their performance can be viewed as a guide for broader market movements. One should be more cautious if a leading stock shows signs of exhaustion, if they are technically…
Fundamentals tend to be serene, while prices are tempestuous. Market sentiment, news reconciling large information asymmetry, events resetting expectations, liquidity, momentum, and technical factors are all responsible for these dynamics. Understanding the stimulant of a large price move is an…
Consumers can access 3 types of income Assessing the health of an economy and predicting future consumption and economic growth potential, involves a comprehensive analysis of cycles and trends of savings, employment income, and credit.
Stocks don’t do good or bad; they do better or worse. Everything is relative to market expectations.
Investing in something just because it is cheap is likely a value trap.Shorting something just because it is expensive is a death wish.
Markets and securities are often overbought or oversold, and they can maintain or extend those conditions for a long time. The outcomes that are more likely to happen may not happen until long after they first became likely. Markets can…
Most of the big market moves can be separated into two pieces:
The investment grade (IG) market grew fivefold between 2006 and 2023, while the balance sheets of IG market makers shrunk during that period. This increased the sensitivity of credit spreads to liquidity. During the same period, more liquid Fixed Income…