Options, Futures & Derivatives
As we all recover from tryptophan-induced comas due to our Thanksgiving turkey, the market seems to be waking up as well. Yesterday, Fed Chair Jerome Powell gave a speech which seemed to confirm the emerging “lower, but higher” consensus about interest rates. In his remarks, Powell said it made sense to “moderate the pace of our rate increases” to a level sufficient to bring inflation down. In other words, December’s anticipated rate hike will likely be 0.5% rather than the recent trend of 0.75%. That was enough to spark a relief rally in afternoon trading, sending the S&P 500 higher… Read More
As we all recover from tryptophan-induced comas due to our Thanksgiving turkey, the market seems to be waking up as well. Yesterday, Fed Chair Jerome Powell gave a speech which seemed to confirm the emerging “lower, but higher” consensus about interest rates. In his remarks, Powell said it made sense to “moderate the pace of our rate increases” to a level sufficient to bring inflation down. In other words, December’s anticipated rate hike will likely be 0.5% rather than the recent trend of 0.75%. That was enough to spark a relief rally in afternoon trading, sending the S&P 500 higher by more than 3%. The Nasdaq, meanwhile, leapt by 4.4%. As we prepare for the end of the year, we’ll certainly stay on top of things. And who knows, we may even have a couple of surprises in store for our loyal readers… In the meantime, I want to turn to one of our friends over at Investing Daily, Jim Fink. For some of you, the interview below will be a reintroduction. But for those of you getting to know him for the first time, Jim is an impressive guy who has a ton of credentials and isn’t afraid to… Read More
In Greek mythology, the priestess Cassandra was a daughter of Priam, King of Troy. She was given the gift of foresight by Apollo. But since she refused to return the god’s affections (and Apollo could not revoke the gift), she was cursed to utter true prophecies but never to be believed. In case you ever wondered why the name Cassandra is invoked when discussing someone who warns of impending doom, yet is not believed, now you know. I bring this up because we’ve spent the better part of the past decade warning investors about the dire prospects that most people… Read More
In Greek mythology, the priestess Cassandra was a daughter of Priam, King of Troy. She was given the gift of foresight by Apollo. But since she refused to return the god’s affections (and Apollo could not revoke the gift), she was cursed to utter true prophecies but never to be believed. In case you ever wondered why the name Cassandra is invoked when discussing someone who warns of impending doom, yet is not believed, now you know. I bring this up because we’ve spent the better part of the past decade warning investors about the dire prospects that most people face when it comes to their financial future. Most people who are close to retirement (within a decade or less) simply don’t have enough to support their expectations. For the younger generation, the outlook is even worse. (How can you save for retirement when you can’t even afford a house?) Those are just the facts, and they’re backed up by numerous studies and surveys. But unfortunately, the average investor has a “hands-off” mindset when it comes to their portfolio and retirement. We think that’s a grave mistake. The game has changed. No longer can you afford to simply plow your… Read More
A slight wording change from the Fed hints at a potential rate hike next year. Here's what that for the income we generate in our portfolio... Read More
A slight wording change from the Fed hints at a potential rate hike next year. Here's what that for the income we generate in our portfolio... Read More