A worrisome vulnerability

This week we examine some worrisome characteristics of the U.S. market.  According to Liz An Sonders of Charles Schwab, global monetary conditions remain equity market friendly, but pending U.S. rate hikes may change perception about market valuation.  Gavyn Davis, columnist for the Financial Times, notes increasing grounds to worry about the sustainability of the market’s

Where are the gains from international diversification?

2015 may be a year when global diversification is appreciated once again.  The world’s economies and central bank policies are diverging, creating conditions for widely varying results.  Relative valuations among countries may be a reliable guide to future results. Global Diversification Could be 2015’s Winner.  2015 is likely to be a year when global diversification

What lies ahead?

The new year has just begun, but analysts are already forecasting a period of higher market volatility in 2015. Ed Easterling of Crestmont Research graphs the present situation and shows what investors can expect in the coming months.  At the same time, Research Affiliates advises investors to use the structural “building blocks” approach to better anticipate real returns.  And,

What’s driving market volatility now?

What drives market volatility?  Professor Robert Shiller of Yale contrasts the narrative of recent volatility with volatility in 2011.  Skyrocketing volatility of the last several weeks, although painful, is normal and can be healthy, according to the analysts at Charles Schwab.  In the final article, Mark Miller of Reuters analyzes recent social security inflation adjustments

Fear subsides

Calm has returned to markets after several unnerving weeks. The “fear index” has dropped to a calm reading after spiking to its highest reading since 2011.  Lessons were learned.  The consumer is unshaken. Panic Defused in Stocks with Sharpest VIX Drop Since 2009.  The panic has subsided.  The Chicago Board of Options Exchange (CBOE) Volatility