Why Confidence Remains Low (Hint: Blame Washington)
Despite some signs that economic fundamentals are improving - including an improving labor market and rising home prices - U.S. businesses and consumers continue to exercise caution, holding back on spending and new investment. Whats behind this puzzling dilemma? As I write in my new Market Perspectives paper, "The Price of Politics," uncertainty over public policy is partly to blame.
Volatility Should Persist, But Stick With Stocks
Volatility rose last week and is now close to its long-term average. Economic data has softened, but we do not believe the Federal Reserve will change course. Investors may want to consider adding to equity positions during periods of weakness
Buy What You Know? Not So Fast
Buy what you know. It’s an old admonition, and on the surface a sensible one. Focusing your investments on those companies that you’re most familiar with should help mitigate the risk of a bad investment choice. Unfortunately, like a lot of conventional wisdom, it’s wrong. Concentrating your portfolio to local investments, while comforting, is a mistake for two reasons.