Month: April 2016

Why Isn’t The Market Behaving Properly?

What’s going on with the stock market right now? We started the year with the worst market performance in history.  In February, volatility continued to reach multi-year highs.  As if that weren’t bad enough, the media reported in March that second quarter earnings were expected to be broadly lower. Things were shaping up to be…
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Can The U.S. Government Go Bankrupt?

According to Time Magazine, the answer is yes. I refer to their recent cover proclaiming “Make America Solvent Again!” and touting our current $13.9 trillion debt level.  Sounds more like a rallying cry for a political candidate than an attempt to educate the public on economics.  But that’s pretty typical for the media these days. …
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Does Diversification Still Work?

A cornerstone of Modern Portfolio Theory is the concept that you can reduce the risk (variation) of an investment portfolio by adding securities whose performance does not correlate with those in the portfolio. This led to the identification of asset classes – groupings of securities that perform similarly under certain economic conditions – and ultimately…
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