Comparing the 2018 Melt Up to the 1999 Bubble

“‘Melt Up’ Rally Propels Dow Above 26,000 as Fear Turns to Greed” proclaimed The Wall Street Journal this morning. The headline comes as optimism in our weekly sentiment survey is staying at an unusually high level. Even outside of the office, more people have been bringing up the market’s run to me in conversations. The…

 

Is It Active or Passive?

As was widely expected, the Federal Open Market Committee raised interest rates by a quarter point (0.25%). Whenever there is action by the Federal Reserve, bond experts are often turned to for their views on navigating the credit markets. Their insights clearly reflect active investing, but what if an investor were to use their opinions…

 

My Notes From the CFA Institute’s Annual Conference

I spent the first half of this week at the CFA Institute’s Conference in Philadelphia. The conference is targeted toward CFA charterholders and covers a very wide range of topics. It’s also an international conference, with the third biggest delegation of attendees, behind the U.S. and Canada, coming all the way from South Africa. I’ve…

 

Real Returns Favor Holding Stocks

This article originally appeared in the August 2014 issue of the AAII Journal. Jeremy Siegel is a professor at the University of Pennsylvania, the senior investment strategy advisor to WisdomTree Investments and the author of the best-selling book, “Stocks for the Long Run” (fifth edition, McGraw-Hill, 2014). He spoke to about the importance of maintaining a significant allocation…

 

One in Three Members Say Stocks Overvalued

This week’s Sentiment Survey special question asked AAII members about their comfort level with the current valuation of stocks. Nearly one in three respondents (32%) said they view stocks as still being overvalued, somewhat high or are otherwise not comfortable with prevailing valuations. Many of these respondents don’t think corporate earnings justify current valuations, while…

 

Responding to Market Bubbles: What You Should Do

This article originally appeared in the June 2015 issue of the AAII Journal. Robert Shiller is a Nobel laureate and the Sterling Professor of Economics at Yale University who studies market fluctuations and investor behavior. In April 2015, he spoke to AAII about stock and bond bubbles and the current market. The term “bubble” gets used…