The answer to that question depends on the reason why interest rates are rising. If it’s because real economic growth is picking up, that should be good for stocks through the earnings channel. If it’s because inflation is getting out of control, that should be bad for stocks through the valuation channel.Comments Off on Will higher bond yields kill the bull market in stocks?
Weekly Market Compass: As Israel leads the way in COVID-19 vaccinations, events such as concerts and theatre performances return after an 11-month ban.Comments Off on Vaccines pave the way for ‘normal life’ to re-emerge in Israel
Weekly Market Compass: Bitcoin has gained credibility over the past three years, but I believe its use as a currency, a diversifier or an inflation hedge is a bit off the mark.Comments Off on Bitcoin: Digital currency, digital gold, or digital tulip?
Weekly Market Compass: As we enter a new lunar year, the U.S. Federal Reserve reiterates its stance on inflation and stimulusComments Off on Could the Year of the Ox be a metaphor for 2021’s global economy?
Weekly Market Compass: Market speculation hit a new level this week with GameStop, and the U.S. Federal Reserve threw cold water on inflation concernsComments Off on The U.S. Federal Reserve downplays inflation while GameStop captures the world’s attention
Weekly Market Compass: It was a week of surprise, horror and disappointment. Why didn’t stocks react?Comments Off on Stocks march upward during a tumultuous week in U.S. history
Market predictions and investment resolutions for 2021Comments Off on Weekly Market Compass: Market predictions and investment resolutions for 2021
E-commerce has been like a massive wave that has washed over much of the traditional retail footprint in the U.S. and Europe. Globally, e-commerce retail sales are projected to hit $6.5 trillion USD in 2024, from $4.0 trillion USD in 2020.1 In the U.S., growth in e-commerce retail sales more than doubled in 2020 due to the COVID-19 outbreak, and is projected to grow at 12% annually over the coming years.1Comments Off on Looking for an edge in e-commerce
In 2020, U.S. equity markets have taken a path that few could have seen coming. As a result, the S&P 500 Index has become more top-heavy than it’s been in 45 years. Below, I explain why this is the case, what it means for investors — and what they can do to help mitigate this concentration risk while maintaining exposure to the companies that make up this well-known benchmark.Comments Off on Have the biggest mega-caps run too far?
Responsible investing is becoming more mainstream as demand increases for strategies that incorporate ESG factors into their investment process. The drivers come from regulatory pressure, demographic shifts such as the growing influence of millennials, and the greater availability of corporate data on ESG issues. More generally, investors want their investments to align with their own values, especially if it offers the potential for better risk-adjusted performance.Comments Off on The Evolution of ESG
After the U.S. killing of Qassim Suleimani on Jan. 3 and Iran’s retaliatory, non-lethal missile strike against two U.S. military facilities in Iraq on Jan. 7, the situation appears to have de-escalated. However, investors continue to worry about the potential for this conflict between the U.S. and Iran to worsen. We do not believe that a war is likely at this juncture, but it is important to understand the potential effects that such a worst-case scenario could have on the markets.Comments Off on What could the U.S.-Iran conflict mean for investors?
2019 was a great year for markets, and equities delivered strong returns for the year. U.S. stocks led the way at 29.07%, Chinese stocks returned 20.94%, European stocks returned 20.03%, and emerging markets delivered 15.42%.1 But the ride wasn’t always smooth, with ongoing geopolitical sagas (like Brexit) and short-term market events (like the inverted yield curve) rattling markets – and investors’ resolve – along the way.Comments Off on Five issues for investors to watch in January
On Thursday evening, Iran’s top security and intelligence commander, General Qassim Suleimani, was killed in a drone strike at Baghdad International Airport. The strike, which was authorized by U.S. President Donald Trump, represents a potentially dangerous escalation in the growing confrontation between the U.S. and Iran.Comments Off on What does Qassim Suleimani’s death mean for the market?