The New Bubble – Bitcoin and Other Cryptocurrencies

Bitcoin rose above the $4,000 price mark, adding to this year’s surge in value. The New York Times attributes the most recent upward spike to an agreement among key backers to settle “a long-disputed update to the network’s software and rules.” Regardless of the reason given, the price action exemplifies unfettered speculation. To be fair,…

 

Retail Investors Think U.S. Stocks Are Overpriced

Pull up a financial website these days and you probably won’t have to look far for an article discussing the current valuation of the U.S. stock market. As I am writing this blog post, a non-financial website that I frequent has no less than four links to articles about the current “bubble” in stocks and…

 

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…

 

Rate Hikes, Inflation and What You Earn

Yesterday’s interest rate hike by the Federal Open Market Committee was the third in a 15-month period. More notably, it was just the third rate hike since the financial crisis. The rate hike represents another step in the (so far) very gradual removal of stimulus. At current levels, rates remain low on a historical basis…

 

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…

 

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…