Search Results for: investment

Is the US Expansion Fizzling Out? This chart shows that business investment and consumer expenditure decline in the United States. Image: Deutsche Bank Global Research

Share of Market Value in Bloomberg Barclays USD IG Since 1990, the amount of BBB-rated bonds has doubled. This is only one step away from junk bonds.  Keep in mind that many investment grade investors own BBB-rated bonds, but they are not allowed to hold junk-rated bonds. So, any drop in the credit ratings could…

World Exports Are Contracting – May 2019 Nowadays, exports of goods and services represent 29% of global GDP and trade tensions are causing a contraction in world exports. Image: First Eagle Investment Management

More than 200 Years of U.S. Interest Rates in One Chart This long term chart covers more than two centuries of US interest rates (yield on the U.S. 10-year Treasury). Image: Goldman Sachs Global Investment Research Click the Image to Enlarge

Investor Movement Index vs. S&P 500 The Investor Movement Index indicates the sentiment of TD Ameritrade retail investors. Thus, retail investors are net buyers of equities when the stock market is expensive, and they are net sellers of equities when the stock market is cheap. As usual, retail investors react to equity price movements. They buy and sell…

IPOs Tend to Underperform the Market The evidence shows that, despite their higher risk, initial public offerings make poor investments. You may also like “Unicorn IPOs, Are They Good Investments?“

S&P 500 1-Month Volatility History Since 1928 and VIX Since 1990 The stock market crash of 1929, the Black Monday of 1987 and the global financial crisis in 2008 were the most extreme events. Image: Goldman Sachs Global Investment Research

Why Albert Einstein Said “Compound Interest Is the Eighth Wonder of the World” If you invest $3000 per year from 10 years before you turn 30, you would earn more money when you turn 70 than if you invest $3000 per year from 30 until 70. That’s the power of compounding, because the amount earned…

Why the Fed Can’t Raise Interest Rates Above Inflation Rate, Today? The Federal Reserve can’t raise the Fed funds rate above the inflation rate because the US productivity growth is too weak.Net Domestic Investment to GDP is in a long-term downtrend and reduces productivity.This makes it difficult to see the Fed funds rate exceed the…

Ken Fisher: ‘Third year of a president’s term is positive’ “…because political risk aversion falls as you get to increase gridlock which happends in every midterm election.” Billionaire Ken Fisher thinks there is room to run for the stock market this year. But don’t try to time the market and keep your investment strategy simple.