How Expectations Around the Fed, Banks, and the Economy Affect Investors
When it comes to markets, day-to-day price swings are often more about what investors expect than the underlying facts. This is because markets are designed to anticipate future events and assign them a price today. This gap between reality and expectations has driven stock and bond market volatility in recent days due to the Fed's latest announcement and headlines in the banking sector. What should investors know about these developments...
What History Says About Markets Reaching All-Time Highs
The author Fyodor Dostoevsky once wrote that “man only likes to count his troubles; he doesn’t calculate his happiness.” The idea that the glass is always half empty perfectly captures how many investors feel about the economy and financial markets, especially over the past few years. During recessions and bear markets, investors worry that the situation will never improve. When the economy and markets do recover, investors worry that it...
What the SEC’s Bitcoin ETF Approval Means for Investors
The S&P 500 has reached a new all-time high, coming full circle in just two years, despite growing uncertainty around the economy, the path of Fed rate cuts, and rising interest rates. Outside of traditional asset classes, Bitcoin also reached its highest level in two years recently following last year's run up. This has been fueled by the broader rally in risk assets and the recent approval of Bitcoin ETFs...
How the Budget Battle in Washington Impacts Investors
The battle over the federal budget in Washington is adding to political uncertainty at a time when investors are already nervous about the economy and financial markets. Lawmakers are running out of time to agree on and approve a new budget after kicking the can down the road twice since last September. The fact that this is a presidential election year and GOP caucuses are underway only adds to the...