One of the ironclad truths of investing is that with higher reward comes higher risk. I’ve been thinking a lot, years actually, about how to bend that relationship to earn higher returns while simultaneously lowering risk. Covered calls, which protected clients from significant downside risk during the February correction, had some promise as a method…
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It’s been said that markets take the stairs up and the elevator down. Now that the market has fallen another 1,000 points and hit correction territory (a fall of 10%) within just one week, fear has come roaring back after being in hibernation for what seemed like years. This is a good thing, because historically,…
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The Wall Street Journal recently posted an article that captured two of the opposing forces that I expect will cause the markets to have a bumpier ride in 2018. It was titled “Don’t Trust Dow 25000. The Economic Cycle Is Broken: Markets and economic indicators offer differing signals on where the U.S. economy is poised.” When it…
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I was asked by a client if she and her husband should take Social Security benefits as early as possible because of the widely held expectation that Social Security would eventually run out of money during their retirement.To help clarify a bit of confusion around the subject, it’s expected that under the current trajectory, the…
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Markets just don’t seem to go down anymore, and valuations don’t seem to matter anymore either. And that makes this one of the most unusual and uncomfortable markets I’ve been in. I call this market the Contrarian Killer. That’s because every valuation metric that mattered in the past that had led to a precipitous decline…
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