Tag Archives: 9a.) Real Investment Advice

High inflation has captured the headlines as of late particularly as CPI recently hit the highest levels since 1981. Some are even suggesting we will face hyperinflation. However, while inflation is certainly present, the question to be answered is whether it will remain that way, or if the worst may already be behind us? To answer that question, let’s define the difference between an inflationary increase and hyperinflation. Not surprisingly, as Milton Friedman...

Market perspective is essential in avoiding investing mistakes. With CNBC airing “Markets In Turmoil” every time the market dips, it’s no wonder investor sentiment is now the lowest we have seen financial crisis lows. Of course, as shown, extremely negative investor sentiment tends to be the hallmark of the bottom of corrections and bear markets. Nonetheless, now that we are connected constantly to financial media, we are inundated with headlines designed to get...

Hiking rates into a wildly overvalued market is potentially a mistake. So says Bank of America in a recent article. Optimists expecting the stock market to weather the rate-hike cycle as they’ve done in the past are missing one important detail, according to Bank of America Corp.’s strategists.While U.S. equities saw positive returns during previous periods of rate increases, the key risk this time round is that the Federal Reserve will be “tightening into an...

“Sell Energy Stocks” Was Originally Published At Marketwatch.com Sell energy stocks? Such certainly seems counter-intuitive advice given high oil prices, geopolitical stress, and surging inflation. However, some issues suggest this could indeed be the time to “sell high.” Before we go further, it is essential to state that I am not recommending selling energy stocks in total. As is always the case, portfolio management is about minimizing risk and preserving...

The market selloff into January rattled investors as concerns of “So Goes January, So Goes The Year” began to dampen expectations. Combined with a more aggressive stance from the Federal Reserve, rising inflation, and a reduction in liquidity, investor concerns seem to be well-founded. As discussed last week in “Passive ETFs Are Hiding A Bear Market,” the “blood bath” in the high-beta stocks is particularly humbling for the retail crowd that piled into risk with...

“Crypto’s Crash,” says some financial news headlines. The reality is Bitcoin, Ethereum and others are down about 10-15% in the last few days. The word “crash” may seem appropriate to describe the sharp decline, except 10%+ moves in a matter of days is the norm, not the exception for crypto. Ignoring the crypto crash, the S&P 500 went higher. The index is up over 25% this year. Despite such an outsized gain, the table below from LPL Research argues we should be...

2021 isn’t over yet. So here are 10 smart money moves to make right now. Saving money should be a year-round endeavor, but life gets in the way just like anything else. So with 2021 coming to a swift, thankful end, take advantage of the fourth quarter to accelerate your financial acumen, bolster your balance sheet and successfully springboard into the new year. Tip One: Max Out HSA Contributions for 2021. A Health Savings Account is a pre-tax savings miracle...

Previously, we discussed Modern Monetary Theory (MMT) and its one limitation of inflation. However, as is always the case when “theories” collide with “reality,” the tenants of the theory are quickly discarded. There is no doubt that since 2020 both Republicans and Democrats alike have shunned fiscal responsibility for the short-term gratification of MMT. Ms. Kelton tweeted such earlier this year. The writing is hilariously on the wall here, but people want to...

The “Fear Of Missing Out” has infected retail and hedge funds alike as they ramp up exposure to chase performance. We have previously discussed the near “mania” of retail investors taking on exceptional risk in various manners. From increasing leverage, engaging in speculative options trading, and taking out personal loans to invest, it’s all evidence of overconfident investors. However, that “risk appetite” is not relegated to retail investors alone. Professional...

The Lifeline of Markets- Liquidity Defined We recently read an analogy in which the author compares the current state of asset prices to an airplane flying at 50,000 feet. Unfortunately, we cannot find the article and provide a link. The gist is market valuations are flying at an abnormally high altitude. While our market plane cannot sustain such heights in the long run, there is little reason to suspect it will fall from the sky either. Many investors are writing...