The Federal Reserve has raised interest rates. More increases are expected in 2016. Barron’s reports. Liz Ann Sonders of Charles Schwab says to expect uncertainty at the start of the coming year. Despite a stated preference for good new, people often choose to read bad news headlines first. Jim Parker of DFA warns investors of
A new deal was announced Monday that averted Greece’s immediate exit from the Eurozone and the potential for contagion. This week we review the latest deal and why it may not work. Hard-Won Greek Deal Was the Easy Part. Greece agreed to important policy commitments in return for financial commitments. Implementation will be difficult and
We have had a few people inquire about the Greek debt crisis and its potential impact to US investors. It is complicated; we hope you enjoy some of these perspectives. The Greek financial crisis, explained in fewer than 500 words. Vox provides a big picture overview of the Greek debt crisis. Click here to read
Stock investors are beginning to brace for a rate rise. The combination of a good jobs report, bond market volatility, and the specter of rate increases contributes to stocks and bonds coming under pressure. What’s good for the economy isn’t necessarily good for stock and bond investors. This is what a good jobs report looks
As humans we seek a measure of control over our financial futures. One way we do this is through stories. Since the Great Recession of 2008 the abiding narrative about the economy is that, eventually, business conditions will return to “normal”. This is the story we have wanted to hear. This week we examine problems
A client posed the question last week: “Is the economy stuck in a rut of low growth?” This week we address it. The precise term used these days to talk about the persistence of low growth is “secular stagnation”—a semi-permanent period of weak growth. Is the Economy Suffering from Secular Stagnation? To tee up the
Last week the Federal Reserve scaled back its view of prospects for the U.S. economy and labor market. Reuters discusses the timing of when interest rates will go higher. Many of our clients have been burned by the brokerage industry. The CFA Institute advocates for Department of Labor proposals to broaden the sweep of individuals
This week, a few things especially caught our attention. International diversification is starting to reward investors again after a considerable period when a blend of U.S. Stocks and bonds outperformed relative to most other asset allocations. Inflation is starting to accelerate a bit, which contributed to a sell-off one day last week. We also noted
Investors concerned about recent market swings wonder if there’s any relief in sight. The short answer: not any time soon. The Chief Investment Officer at Schwab, Liz Ann Sonders forecasts the near future for this secular bull market. As tax deadlines approach, the IRS recently announced taxes collected from affluent taxpayers rose more than expected
If we had told you 25 years ago--when you were earning 8.5% on a 30 year U.S. Treasury bond—that you would be earning 2.5% today on that same bond, you would have labeled the thought sheer madness. Yet, that is today’s reality. This week we review why low interest rates may be with us for