According to Investopedia, mean reversion is a financial theory suggesting that asset prices and returns eventually return back to the long-run mean or average of the entire dataset. Recently, the concern has been that the market is trading above historical norms and may find itself reverting to the mean (Chart 1). Paying attention to mean […]
Will This Bull Ever Tire? Part 3 – Tough Trade Talk
Recent news headlines highlight the danger of trade wars accelerating. In an effort to “MAKE AMERICA GREAT AGAIN,” President Trump is eager to review all trade agreements to make sure American consumers and businesses are not getting disadvantaged in any way. Every organization, treaty or agreement–past, present, and future–is under ongoing scrutiny. Trade deals between […]
Will This Bull Ever Tire? Part 2 – The Threat of Rising Inflation
Inflation indices are tasked with the job of establishing an overall price level for goods and services that can be tracked over time. Consumers do not need an index to tell them what their wallet is already telling them – prices go up over time. The speed at which prices rise will dictate the effect […]
Will This Bull Ever Tire? The Effect of Rising Yields on Asset Allocation
For the first time in a decade, the 2-year Treasury yield has met and exceeded the S&P 500 dividend yield (see Figure 1). Why is this significant? It is significant because as bond yields edge up, fixed income allocations become more attractive to investors. Thus, stock returns can be dampened by what appears to be a […]
From the Bottom of My Heart: Thank You!
“What doesn’t kill you makes you stronger!“ The past week has no doubt been the most difficult in my life. My daughter, Ana, has yet to wake up, but is taking small steps of improvement. Yes, my life has certainly changed, and I mean it in a good way. While the accident was definitely horrifying, […]
The Tale of Retail: Taking the Pulse
“The Amazon Effect.” This phrase has come to mean the upending of retail as we know it. Slowly, but surely, buyers’ habits are changing. Consider this list of names: Radio Shack, Payless, Gymboree, The Limited. All of these well-known stores, and 19 others, have been added to the pile of 2017 retail bankruptcies. What exactly […]
