Yes. It's a Bubble. So What?
With sky-high valuations in the US stock market, and what we believe is a tech bubble that has dangerous implications for other areas of the market, we suggest four actions investors can take now to avoid the inevitable bursting of the bubble, and which will likely benefit their portfolios’ long-term performance potential.
Artificial Intelligence: What Is It, and Why Are Companies Adopting It?
Technology companies are known for innovation, and it doesn’t take long for a revolutionary new technology to take hold and become a part of people’s daily lives. In my view, investors shouldn’t be threatened by technology. Rather, they should be skeptical of companies not utilizing technology to its fullest potential.
Boeing, from Purchase to Sale: A Value Investor’s Exercise of Patience, Discipline and Risk Reduct
From the time I was a little tyke, I knew the benefits of having cash available to make a purchase. With it I could easily buy something under very favorable terms when others were in desperate need of that cash.
#DeleteFacebook: Data Privacy Concerns Flood the Social Network
On March 16, news broke that British political consulting firm Cambridge Analytica had gained improper access to data from as many as 50 million Facebook users (an estimate that has since been upped to 87 million).
Two of the Most Important Investing Paragraphs We Have Ever Read
These are two of the most important paragraphs we have encountered in more than 47 years of studying markets. DO NOT read them just once. Go off to a quiet spot that invites contemplation and READ THEM SEVERAL TIMES. Then reflect on all of the mistakes you have made in trading and investing.
Weighing the Week Ahead: Is Strong Earnings Growth Already Reflected in Stock Prices?
The economic calendar is normal, with an emphasis on housing. Earnings season begins in earnest, with widespread, high expectations.
Don’t Abandon International Diversification
To address questions about the benefits of international investing and diversification, we don’t have to look too far back in time.
Symmetry Policy: How to Adapt to a More Volatile Market Environment
It’s easy to understand why the return of equity market volatility in the first quarter of 2018 caused some consternation for investors.
Q2 Market Outlook: Five Things to Watch in April
The first quarter of the year has ended with major developed market indices down slightly and major emerging market indices up slightly. But those numbers belie a very turbulent period in which stocks were whipsawed.
Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator
With the latest monthly close and the GDP Q4 Third Estimate data, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 136.4%, up from 131.4% the previous quarter.
Weighing the Week Ahead: Have Stock Prices Veered from the Fundamentals?
The economic calendar has several of the most important reports. The managerial rosters will be back at full strength, perhaps after an extra day or two off. Investment committees will consider implications from Q1 results. Pundits will try to explain what it all means.
The Keys to Successful Tactical Management
Terri Spath is chief investment officer at Sierra Investment Management. She is responsible for market and economic analysis, portfolio allocation, investment strategy and building client solutions. In this interview, she explains how tactical management differs from market timing, and why it will excel in the current environment.
Springtime Chart Fling
Just like the weather, the world economy and financial markets go through cycles. Most years, they don’t change suddenly. We get some transition time between the colder and warmer seasons. I fear we may be in an economic transition right now, and it may not be in the direction of the springtime or summer we would prefer. But let’s look at these charts and see what they tell us.
Moving Averages: March Month-End Update
Valid until the market close on April 30, 2018.
The S&P 500 closed March with a monthly loss of 2.69% after a loss of 3.89% in February. All three S&P 500 MAs are signaling "invested" and three of five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI), Vanguard FTSE All-World ex-US ETF (VEU), and PowerShares DB Commodity Index (DBC) — are signaling "invested".
Unlocking the Performance Potential in ESG Investing
By combining a tilt toward companies that display financial discipline and that embrace corporate diversity with the return engine of a fundamentally weighted portfolio, we believe investors in environmental, social, and governance (ESG)–related strategies have the opportunity to earn superior long-term risk-adjusted returns.