What happens when everyone is invested in the same stuff? When you look at the S&P 500 and compare it to, say, target maturity funds or a total stock market index, there’s a ton of overlap. Just when investors think they’re diversifying, a simple look under the hood shows most engines running on the same stuff. That’s not necessarily bad, but let’s not confuse it with diversification. What is a great disservice to the average investor is they read the names of their funds and feel like they are diversified. “Hey, it’s the S&P 500,” they think. “That should be good diversification.” … [Read more...]
Archives for January 2024
Europe’s Economy Falls Further Behind U.S.
Paul Hannon and Yuka Hayashi of The Wall Street Journal are reporting a growth gap between the U.S. and the eurozone. One factor threatening to weigh further on the European economy is its proximity to geopolitical flashpoints. They write: Europe’s economy stagnated in the final three months of last year, expanding a divide between a booming U.S. economy and a European continent that is increasingly left behind. The fresh economic data showed higher borrowing costs had compounded the earlier impact of higher energy prices in the wake of Russia’s invasion of Ukraine. By contrast, the … [Read more...]
Are Interest Rate Cuts on the Horizon?
Steve Matthews of Bloomberg reports that the Federal Open Market Committee is poised to hold rates but may start considering cuts. Matthews writes: The Federal Reserve will likely hold interest rates steady for a fourth straight meeting but avoid signaling an imminent interest-rate cut. The Federal Open Market Committee is poised to keep rates in a range of 5.25% to 5.5% at its two-day policy meeting ending Wednesday, a 22-year high first reached in July. The rate decision and accompanying statement will be released at 2 p.m. in Washington. Chair Jerome Powell will hold a press … [Read more...]
Time to Get Your Lazy Money Working
When you look at my charts from yesterday, now is a good time to get your fixed-income house in order. After a certain point in an investor’s life, there’s a time to recognize that, “Self, I might not want to work forever. How am I going to make ends meet?” Believe Your Survival Guy when I say retirement is a most stressful time and is in the top ten of life’s emotional events. I know this firsthand because I talk with hundreds of investors about it. There comes a point where you can’t afford to risk your net worth to 100% stocks. Not that you ever do. But at some point, you might want … [Read more...]
Europe Could Have a New Top Dog in Coal Burning
Gavin Maguire of Reuters reports that Turkey recorded its second straight annual increase in coal-fired electricity output. Turkish power producers favor cheap coal over other forms of electricity generation as the country grapples with one of the highest inflation rates in the world. Maguire writes: Turkey is on track to surpass Germany as Europe's largest coal-fired electricity generator in 2024 as high inflation causes power producers to cut purchases of expensive natural gas and boost the use of cheaper coal in electricity generation. Turkey generated a … [Read more...]
Consumer Confidence Climbs to Two-Year High
Jeffry Bartash of MarketWatch is reporting that the U.S. consumer confidence index climbed to a two-year high. Bartash writes: Consumer confidence jumped in January to a two-year high of 114.8, a survey showed, reflecting slower inflation, a record stock market and improved growth in the economy. The closely followed index advanced from a revised 108.0 in December, the Conference Board said Tuesday. Economists polled by the Wall Street Journal had forecast the index to register 115.0. The last time the index was higher was in December 2021. [...] And the next move by the Federal … [Read more...]
Turns Out, Robots Need Human Help
The robot takeover isn't going as smoothly as planned. It turns out that sometimes robots need guidance just like humans. Not everything can be automated, yet anyway. Liz Young explains in The Wall Street Journal: Caroline Rutenberg got an alert one day that one of her charges needed help at the Amazon.com warehouse where she works in Windsor, Conn. Rutenberg walked across the warehouse floor and found the crew member covered in white paint and refusing to move after an accidental spill. Rutenberg took a cloth and gently wiped off the worker’s eyes, getting a glassy, expressionless stare … [Read more...]
Three of My Favorite Charts
Your Survival Guy studies these charts daily: Action Line: Keep your eye on what’s happening, and let’s talk. Originally posted on Your Survival Guy. … [Read more...]
Billions of Tax Dollars Flow into Microchips
Yuka Hayashi of The Wall Street Journal is telling her readers that the Biden administration, eager for an economic win, is injecting billions into advanced chips. Hayashi writes: The Biden administration, eager to highlight a signature economic initiative as elections approach, is expected to award billions of dollars in subsidies to Intel, Taiwan Semiconductor Manufacturing Co., or TSMC, and other top semiconductor companies in coming weeks to help build new factories. The grants are part of the $53 billion Chips Act, intended to reshore production of advanced microchips and fend off … [Read more...]
Electric Vehicle Industry Rocked by Setbacks
Ryan Felton and Christina Rogers of The Wall Street Journal are reporting a bumpy start for what was supposed to be a big year for electric vehicles. They write: The auto industry’s pivot to electric vehicles has been rocked by setbacks in the first weeks of 2024, creating more uncertainty as a flood of new battery-powered models is hitting showrooms. The latest bad news came Wednesday when Tesla—the world’s most valuable automaker—warned of notably lower growth this year and left investors with few answers on how it will slow its profit-margin erosion. The downbeat remarks followed … [Read more...]
- 1
- 2
- 3
- …
- 8
- Next Page »