Stumped by the Stock Market Slump? Start by Picturing a Used Car Dealership
Stocks have been slumping on a variety of concerns, from President Donald Trump’s ongoing trade war with China to worries about an economic slowdown and rising interest rates. Given the many factors driving shares up or down on any day or week, it’s hard to make sense of what’s happening on Wall Street. Based on my many years of experience teaching and writing about financial markets and...
Good Use of a Year-End Bonus
Spending Money isn’t a Bad Thing, but Spend Mindfully Many companies earmarked 2018 year-end bonuses this past fall – well before the markets reversed course. As such, you may find yourself fortunate: You got a year-end bonus for 2018. Shelve for a moment your visions of exotic trips and instead evaluate how to make the most of this extra money. Your year-end bonus remains taxable income...
Federal Reserve Raises Rates for the 4th Time
But Fed officials now forecast two rate hikes in 2019, down from three From the Federal Reserve press release dated December 19, 2018: “Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months...
The January Effect: Does it Matter in 2019?
What does history tell us and how should investors react? The January Effect The January Effect is a pattern exhibited by stocks in the last few trading days of December and the first few weeks of January. During this period, particularly starting in January, the theory is that stocks tend to rise. In simple terms, the January Effect is a consequence of: Tax-loss selling, in which invest...
