Two plus two equals four. That’s math. It’s real. It’s measurable. It’s fact. That’s how finance is supposed to work. But maybe four is not enough. Maybe it’s too much. How quickly can I get from two to four? I used to be at four but now I’m at two and since four is ‘right’ [...]
Realizing that in 2020 we speak in silly absolutes (e.g. if you aren’t outraged that your toaster has darkness settings then you are racist) we’ll preface this post with the following: We’re apolitical. We don’t care. Democrat or Republican. Whatever. Can we all just get along? Anyway... Back in 2016 we wrote about the Delaware [...]
Feb 2020: The S&P 500 hits an all-time high before the COVID-induced selloff. Aug 2020: The S&P 500 recovery is complete as the index sets a new all-time high. A funny thing happened along the way that’s not captured in the above graph. Earnings and projected future earnings fell off a cliff – the [...]
Maybe it’s fight or flight but when times are good people tend to worry about the next downturn. When times are bad people tend to worry it can only get worse. It’s why those preaching negativity sound astute whereas those being pragmatic or positive sound out of touch with reality. Consider the economy and its [...]
The so-called TINA trade (“there is no alternative”) suggests stocks are the only place to invest. Cash is yielding nothing unless you want a 1-year CD at 0.10%. The 10-year Treasury (currently at 0.695%) is risky as rates have nowhere to go but up. Corporate bonds might be attractive on a risk/return basis but for [...]
After Friday’s jump (credited to the jobs report but, frankly, “pundits” always confuse correlation with causation) the S&P 500 was roughly even YTD. After Mon’s increase the S&P 500 closed positive for the year. That’s right – despite all the handwringing and proverbial jumping out of windows by many investors the S&P 500 is positive [...]
IRA owners in mandatory distribution status need not take their Required Minimum Distributions for tax year 2020. The waiver is part of last week’s legislative action taken by Congress and signed into law by the President to provide fiscal stimulus during the COVID-19 crisis. Governmental logic (not meant as an oxymoron but…) is that without [...]
The current COVID-19-induced economic and financial shocks aside there are some fascinating trends developing in the United States with equally fascinating socioeconomic implications. OBSERVATIONS People are angry. It isn’t hyperbole to suggest the country has never been more divided at any other point in time but for the issues of slavery and states’ rights in [...]
Now that the noise has died down (a bit) we've opted to say a few words.
The year was 1994: The Shawshank Redemption, Pulp Fiction, The Lion King and Forrest Gump were some of the top grossing films. ER and Friends debuted making Thursday night “must see TV” on NBC. Yahoo and Amazon were launched. Richard Nixon died. Kurt Cobain committed suicide. O.J. Simpson was arrested and charged with murder. Major [...]