The third index that we will look at is the NASDAQ Composite Index. Unlike the other indices that we have reviewed (S&P 500 and Dow Jones Industrial Average), the NASDAQ Composite consists only of stocks that trade on the NASDAQ. A brief review of the NASDAQ exchange is thus a good place to start. Brief […]
The NASDAQ Composite Index: Understanding Stock Indices Read More »
When Momentum Cuts Both Ways Tuesday’s gold selloff highlights a feature of markets that too many people forget: momentum works both ways. Gold has had one of its best years since it was demonetized in 1971. On the spot market—where gold is purchased for immediate delivery—prices have risen from roughly $2,600 at the beginning of
Gold’s Momentum Trade: Why Prices Are Rising — and Falling — Faster Than Ever Read More »
A Timely Book for Investors A few times a year, a book comes out that makes this middle-aged bookworm as excited as a kid on Christmas morning. October 14th, Andrew Ross Sorkin’s new book, 1929: Inside the Greatest Crash in Wall Street History – and How it Shattered a Nation, was released. I practically chased
The Lessons of 1929: Why Andrew Ross Sorkin’s New Book Matters Now Read More »
“Ignoring the Macro” Can Be Misleading Value investors invest in businesses, not markets. Accordingly, many investors take pride in “ignoring the macro and focusing on the micro.” In my opinion, investors shouldn’t take this adage too literally. I’ve seen too many financial market blowups to think that “ignoring the macro” is a good idea. The
Macro Risks: Why Smart Investors Pay Attention to the Bigger Picture Read More »
On August 22, the Federal Reserve released its revised Statement on Longer-Run Goals and Monetary Policy Strategy. The revised document reverses policy changes introduced in 2020 which some economists believe contributed to the surge of inflation in 2021 and 2022. To understand the 2020 policy changes, we have to go back to earlier in the
The Federal Reserve’s Old New Policy Framework Read More »
