Perhaps no sector of the economy has been impacted by rising interest rates as much as housing. The declines in both housing activity and prices have wide-ranging effects on households and the economy, as well as across financial markets. How might the current slowdown in housing impact portfolios in the months and years to come?
2022 has been a historic year for financial markets and a challenging one for investors. As we approach the end of the year, the Fed is tightening rates at a rapid pace, the war in Ukraine rages on, and many world economies may already be in recession. What could investors possibly be thankful for in an environment like this?
All investors understand that markets operate in cycles. This is even more the case for technology stocks which depend not only on the underlying business cycle, but also experience waves of hype and exuberance. The fact that it is often hard to distinguish between the two means that, for long-term investors, it's important to maintain balance when markets swing too far in either direction. What's driving the tech sector today?
Economic uncertainty continues to affect financial markets, as it rightfully should since, in the long run, stock prices follow trends in economic growth. Where do market expectations stand today and how can investors avoid playing the guessing game that is driving markets?
Major stock market indices have rebounded in October as investors hope for a slowdown in the pace of Fed rate hikes. This occurred despite a jump in interest rates with the 10-year U.S. Treasury yield rising above 4%. What's driving optimism in markets and how should long-term investors maintain perspective?
It's no secret that this year has been characterized by market and economic uncertainty due to inflation, the Fed, geopolitics, and more. Inflation is not an overnight event but the result of supply and demand factors since 2020, compounded by monetary and fiscal policies. These facts underscore the need for investors to focus on the long run and resist the urge to react to every market movement, whether positive or negative.