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'Speculative Frenzy': Tech Stocks Haven't Done This Since the Dot-Com Bubble

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One measure of U.S. technology stocks has just surpassed its dot-com bubble high, raising concerns for one widely followed strategist about unsustainable levels in U.S. stocks.

By: Evelyn Cheng
CNBC News, May 22, 2017

One measure of U.S. technology stocks has just surpassed its dot-com bubble high, raising concerns for one widely followed strategist about unsustainable levels in U.S. stocks.

The MSCI USA Growth Index, whose top three holdings are Apple, Amazon.com and Facebook, has outperformed the MSCI World Value Index so much that the ratio of their performance topped this month a high last seen during the tech bubble in 2000, Bank of America Merrill Lynch's chief investment strategist, Michael Hartnett, said in a note Monday.

10 Big Tax Mistakes That Can Lead to an Audit

The chart below demonstrates a sharp decline in the number of audits since 2010. The IRS audits only 0.5% of all returns as of 2017. That being said, that is still nearly 1 million taxpayers that may face the dreaded audit this coming tax year With that in mind, here is a list of red flags that may draw the attention of the IRS to examining your tax return.

April 2021 - Monthly Market Review

April 2021 monthly market review

This report features a market review that discusses global stock trends, U.S. stock returns, and U.S. Treasury yields. There's also a monthly article, It's Like Riding a Bike. 

CONTINUE READING 

April 2022 - Monthly Market Review

April 2022 Monthly Market Review

This report features a market review that discusses global stock trends, U.S. stock returns, and U.S. Treasury yields. There's also an article that discusses the best investment strategy for long-term success in the face of poor returns, as well as an academic article: Retirement Income as a Psychological Portfolio Problem

CONTINUE READING

 

August 2021 - Monthly Market Review

August 2021 monthly market review

This report features a market review that discusses global stock trends, U.S. stock returns, and U.S. Treasury yields. There's also an article illustrating the magnitude and speed of the economic recovery since the onset of COVID-19 and the subsequent recession, as well as an academic article: Financial Decision-Making in Married Couples 

CONTINUE READING 

August 2022 - Monthly Market Review

August 2022 Monthly Market Review

This report features a market review that discusses global stock trends, U.S. stock returns, and U.S. Treasury yields. There's also an article that discusses the best investment strategy for long-term success in the face of poor returns, as well as an academic article: Capturing Time

CONTINUE READING

 

CONSUMER CREDIT: 3,500 B.C. TO TODAY

Consumer credit is an integral part of modern life and might seem like a relatively new invention. However, historical evidence shows that it has actually been around for more than 5,000 years! This informative infographic takes us on a journey through the history of consumer credit from antiquity through to modern times.

history of consumer credit 01

December 2021 - Monthly Market Review

December 2021 Monthly Market Review

This report features a market review that discusses global stock trends, U.S. stock returns, and U.S. Treasury yields. There's also an article that discusses the best investment strategy for long-term success in the face of poor returns, as well as an academic article: How Do You Start Saving?

CONTINUE READING 

February 2022 - Monthly Market Review

February 2022 Monthly Market Review

This report features a market review that discusses global stock trends, U.S. stock returns, and U.S. Treasury yields. There's also an article that discusses the best investment strategy for long-term success in the face of poor returns, as well as an academic article: The Psychology of Financial  Windfalls.

CONTINUE READING

 

First Quarter 2018 - Quarterly Market Review

This report features world capital market performance and a timeline of events for the past quarter. It begins with a commentary article: Sailing With the Tides.  After the article you can look for a market summary, then the returns of stock and bond asset classes in the US and international markets.

CONTINUE READING

First Quarter 2019 - Quarterly Market Review

This report features world capital market performance and a timeline of events for the past quarter. It begins with a commentary article: Gerard O'Reilly on Understanding Investment Performance.  After the article you can look for a market summary, then the returns of stock and bond asset classes in the US and international markets.

CONTINUE READING

First Quarter 2020 - Quarterly Market Review

This report features world capital market performance and a timeline of events for the past quarter. It begins with a commentary article: The Coronavirus and Market Declines. After the article you can look for a market summary, then the returns of stock and bond asset classes in the US and international markets. Finally it ends with a look at fixed income.

CONTINUE READING

First Quarter 2021 - Quarterly Market Review

This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. The report also illustrates the impact of globally diversified portfolios and features a quarterly topic: YOLO, Meme, and EMH: What's Your Investment Style? 

CONTINUE READING

Fourth Quarter 2017 - Quarterly Market Review

This report features world capital market performance and a timeline of events for the past quarter. It begins with a commentary article: What Should Investors Make of Bitcoin Mania? After the article you can look for a market summary, then the returns of stock and bond asset classes in the US and international markets.

CONTINUE READING

Fourth Quarter 2018 - Quarterly Market Review

This report features world capital market performance and a timeline of events for the past quarter. It begins with a  market summary, then the returns of stock and bond asset classes in the US and international markets, wrapping up with a look at fixed income. Finally, it ends with an article on the quarterly topic: 2018 Market Review

CONTINUE READING

Fourth Quarter 2019 - Quarterly Market Review

This report features world capital market performance and a timeline of events for the past quarter. It begins with a commentary article: Tuning Out the Noise,  after the article you can look for a market summary, then the returns of stock and bond asset classes in the US and international markets. Finally, it ends with a look at fixed income.

CONTINUE READING

Fourth Quarter 2020 - Annual Market Review

This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. The report also illustrates the impact of globally diversified portfolios and features a quarterly topic: Market Review 2020: Looking Back on an Unprecedented Year.

CONTINUE READING

How Evidence-Based Indexing Works

The strategy uses common sense, data, and financial science to boost performance.

In the hallowed halls of academia, noted professors at the top business schools are teaching entire semesters on the benefits of investment strategies using passive indexes instead actively managed mutual funds or picking stocks.

As of 2017, more than $4.5 trillion has flowed into passive index funds and exchange-traded funds. What is passive investing, why are trillions of dollars flowing to this strategy, and more importantly is there a better way to invest?

To fully understand passive investing, it is helpful to understand active investing. Here investment managers (or investors doing it on their own) try to outperform the overall stock market or a specific part of the market using strategies such as fundamental and technical stock picking or market timing.

Indexing Fuss Unwarranted

Passive investing has been ridiculed by Wall Street for decades. The following list is just a small sample of the criticisms I’ve collected over the years:

  • Sanford C. Bernstein & Co. strategist Inigo Fraser-Jenkins called it worse than Marxism.
  • David Smith, fund manager at Hargreaves Lansdown, called passive investors parasites on the financial system.
  • Tim O’Neill, global co-head of Goldman Sachs’ investment management division, warned investors that if passive investing gets too big, the market won't function.

The common theme is that indexing (and passive investing in general) has become such a force that the market’s price discovery function is no longer working properly. Goldman Sachs’ O’Neill has even called passive investing a “potential bubble machine.”

Given the number of questions I get from investors about this issue, one would think that passive investing is now dominating markets. Let’s see if there’s any truth to such beliefs, and whether there’s anything to worry about.

Is Your Investing Strategy Really a Strategy?

SPECULATION, RISK, AND A LONG-TERM PLAN FOR BUYING AND SELLING SECURITIES

Many people are hesitant to invest heavily in the stock market because they consider it similar to gambling or taking too much of a risk with their hard-earned money. With volatility on the rise in our current climate, more investors are pausing to consider the risk they are taking with their investments and whether they should be so bold.

The idea of losing more than they can afford to in advance of their retirement weighs heavier on them than the possibility of capitalizing on the money they invest. Sadly, this type of behavioral bias--fear and herd mentality--can do more harm than good.