An Election Trend That Might Not Be Repeatable

The election day is just 11 days away, thank goodness. As it nears, articles and reports are appearing about the election’s impact on the market. We’re going to discuss the data in the November Stock Superstars Report, which will be posted online Friday evening, but I’ll share some of the data here as well. Rather…

 

The Incredibly Shrinking Fed Growth Forecasts

Seemingly overlooked in all of the hubbub about a possible rate hike occurring at the December Federal Open Market Committee (FOMC) meeting is the longer-term trend of falling growth forecasts. FOMC members have collectively reduced their real (“inflation-adjusted”) long-run GDP growth forecasts for at least five consecutive years. The current long-run forecast calls for 1.80%…

 

Taking on Risk and Hoping the Strategy Doesn’t Backfire

Oh boy. There’s something new to be filed under the category of, “Well, it seemed like a good idea at the time.” It is cash secured puts on the S&P 500. According to The Wall Street Journal, pension funds in Hawaii and South Carolina are using the strategy to generate income. It is a strategy…

 

Think Twice Before Making Your Own Market (Br)exit

There is an old investing adage: “the market is always right.” Investors would be wise to question this adage in light of last week’s Brexit referendum. If the market is always right, then why were traders bidding stocks up as the British were voting to leave the European Union? For that matter, why did stocks…