Historically, stock prices have been: 1. weaker in MTEYs (median annualized return of 3.1% for the Dow Jones industrial average going back to 1900) than in years one (12.7%), three (14.8%) or four (7.4%) of a presidential cycle, but, 2. stronger in the months immediately following the election itself.
We are currently in a bear market (usually defined as declines greater than 20%). This is not something to be feared—just understood.
The narrative of abundant, ultra-cheap credit was a tide that lifted asset classes of all types.
Low interest rates spur economic growth by making it cheaper to borrow and spend. Conversely, higher rates can slow an overheating, inflationary economy.
The U.S. Securities and Exchange Commission has proposed new climate-related disclosures that will be a tremendous burden on oil and gas companies.
It’s important to note that, while stock prices can be extraordinarily volatile (like recently), the intrinsic values of the underlying businesses are much less so.
The process-oriented coach or investor takes the action with the highest chance of success.
Investors should expect more modest returns in 2022.
Investors consistently hurt themselves with wrong-footed attempts to “time the market” and by chasing past performance, when they would be far better off to “keep it simple, stupid,” or KISS.
Algorithms are cheap, don’t eat much and never get sick. However, as Zillow can attest, they can also kill you.
COVID revealed the fragility of the global supply chain; when it’s broken, it’s all over the headlines. When you can’t get what you want, it’s all you think about.
As the calendar flips to October, investors will face various scary “ghosts and goblins,” including the collapse of one of China’s largest real estate developers (China Evergrande Group), the recurring brinksmanship over raising the debt ceiling to forestall a government default/shutdown, and the Federal Reserve’s removing pandemic-related emergency measures.
ARK Innovation was up a stunning 147.8% in 2020 (versus the S&P 500 total return of 18.4%), which led to Wood’s assets under management surging from less than $10 billion at the end of 2019 to almost $85 billion today.
Speculators might or might not know anything about an asset but buy it on a hunch or because a celebrity is promoting it or because everybody else is buying it and it’s going up without me (“FOMO”).
The nearly total shutdown of an economy and subsequent reopening is a truly unique event without precedent or a playbook.
It’s hard enough to make money in things you think you understand, and it’s critically important to know what you don’t know.
Unlike regular companies, SPACs are “shell companies” with no commercial operations at the time of their IPO.
This was the worst quarterly performance for the UST market in more than 40 years.
Protect yourself by always being skeptical of financial advice, particularly the version posted online.
When the memes stop, the excitement fades and the GameStop mania has run its course, what will be left is the underlying business.
