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
What is an investor to do in the face of mounting evidence of an overvalued market? This question was posed by a handful of clients this week in response to last week’s blog highlighting that investors currently are downplaying risk; that several valuation measures are flashing caution warnings; and that investors should be prepared for
March 9th marked the five year anniversary of the current bull market. Memory of the previous bear market is a distant recollection to some. 2013 saw the S&P 500 jump 32 percent and the Nasdaq jump 40 percent while corporate earnings barely increased. U.S. equity indices recently hit record highs. This week we examine reasons
Investors can profit from the insights of this year’s Nobel prizewinners in economics. Though each award winner’s viewpoint seemingly contradicts the other’s viewpoint, together they provide insight into how securities markets are valued. Eugene Fama of the University of Chicago is father of the Efficient Markets Hypothesis (EMH); Robert Shiller of Yale University shot down