Treasury Secretary Janet Yellen recently announced that by October the government will come up against its legal debt limit. Some in the media have interpreted this to mean that Washington is “running out of money,” while others have warned of a government “default.” The first characterization is technically true. Without Congressional action to increase the debt limit, much spending … Continue reading Is Washington Running Out of Money?
I got involved in an interesting investment conversation the other day and thought it might inform readers. The man who engaged me seemed concerned -- no matter what the market was doing. When stocks run high, as (almost inexplicably) they are now, he confesses to a powerful impulse to sell out for fear that markets cannot sustain their strength. When … Continue reading Markets Ultimately Are Tethered to Economic Reality
The Delta variant of Covid 19 has frightened many – in authority, in the media, and in the public. They worry on three counts: for their individual health; for the economy, because if the pandemic worsens, the authorities may re-impose the economic strictures that caused so much economic damage last year; they fear that re-imposition of those strictures … Continue reading The Delta Challenge to the Economy and Markets
Occasionally –often actually – a reader will ask me to divide my posts into two groups: those that explain general principles of investing and those on specific issues of the day. Of course, the requests are all phrased differently, but this how I read them. I can see the impulse behind such requests. The former can guide investment … Continue reading The Principles
All inflation indicators have ticked up recently. The cost of living is rising faster than we have seen for at least ten years. The authorities in Washington – most notably Federal Reserve Board (Fed) Chairman Jerome Powell and Treasury Secretary Janet Yellen – have downplayed concerns over this news, saying the price pressure is “transitory.” They may be … Continue reading The Inflation Threat
I received an interesting question recently. The answer may be instructive to many. A retired man asked: I am 78 years old and count on my investments to help pay my living expenses. Most of my money is in stocks. With the market up so much, do you think it would be wise to sell out now, use some … Continue reading Should I Sell Out?
SPACs (special purpose acquisition companies) have become the rage of late. It stands to reason that SPACs, or something like them, would become popular. Familiar and traditional equity investments have gained so much for such a long time now that investors naturally are searching for investments that they can believe offer a bargain. Nonetheless, they should exercise … Continue reading Some Thoughts About SPACS
Interest in penny stocks has surged. In February, the most recent month for which complete data are available, share trading volume in this area jumped to 1.9 trillion transactions, a whopping 2000 percent from a year ago. This leap will unavoidably create still more interest. In a social media pattern that has grown all too familiar, retail investors will … Continue reading Penny Stocks: There’s Danger Wherever You Look
All of a sudden, it seems, the long-placid bond market has lurched into action. Prices have dropped, and as is the way of bond math, yields have risen. The 10-year treasury note, for instance, has seen its yield more than double, rising from 0.7 percent last fall toward 1.75 percent recently. Much of what seems to have … Continue reading What Is Happening with Bonds?
Photo by Pixabay on Pexels.com Stocks have generally seemed untroubled by Washington’s change of administration; indeed, they hardly seem to have noticed. True, Joe Biden has threatened to raise taxes, an action that markets never like. He has also said he will regulate more aggressively than his predecessor, and that also is something that tends to hurt … Continue reading The Market Is Not Afraid of Joe Biden – at Least Not Yet!