When it comes to investment returns, some investors may only look at the impact of rising stock prices on their portfolios. However, consideration of dividends should also play an important role. Dividends have produced about 40% of the S&P 500’s total returns over the past 90 years. Including dividend income in a portfolio can give Read more
Stock Market
What is the January Effect?
While most of us are winding down after the whirlwind of the holiday season, some investors are gearing up for the annual “January effect.” This is the theory that, seasonally, stocks tend to rise in January more than in any other month. It is a theory that has some basis in historical fact. On average, Read more
Why the Economy and the Stock Market Are Not the Same
You’ve heard it from presidents and pundits, at the PTA meeting and the produce stand: The stock market is up, so the economy is good. Or maybe you’ve heard that, because the stock market is down, the economy is tanking. While the stock market and the economy often do impact each other, however, they are Read more
Fault Lines: Bank Failures Cause Market Tremors
On March 10 Silicon Valley Bank (SVB) collapsed and was taken over by the Federal Deposit Insurance Corporation (FDIC). This was followed by the collapse of Signature Bank (SBNY) and another takeover by the FDIC takeover on March 12. There followed a period of volatility for the banking sector, turmoil in equity and fixed income Read more
Landing Zone: The Fed, Inflation, and Market Volatility
On June 15, 2022, amid efforts to regain control over soaring consumer prices, the Federal Reserve raised its benchmark interest rate by three-quarters (0.75) of a percentage point, the largest interest rate increase in 28 years. The move followed a quarter-point (0.25) increase in March 2022 and a half-point (0.50) jump in May 2022. This Read more
Reclamation Projects: How Stock Buybacks Work
As the stock market reels amid concerns over inflation, stagflation, the Federal Reserve’s raising interest rates, Russia’s invasion of Ukraine, and a surge in commodity prices that could stall the economy, corporate stock buybacks are on a record pace in 2022. Stock buybacks, also known as share buybacks or share repurchase programs, involve a public company Read more