"The contraction in the first quarter is not reflective of the underlying state of the U.S. economy and the subsequent flow of data points to a significant snap-back in the second quarter,” explained the chief economist at Regions Financial. Keep in mind, Richard Moody, like the overwhelming majority of economic pundits, projected rising interest rates in 2014. Not only has the 10-year yield dropped a whopping 50 basis points, but investors who counted on the popular sentiment missed out on the most successful asset class for the first half of 2014 — longer-term bonds.
Mr. Moody may or may not have led you astray, but he certainly was not alone in believing that rates could only go higher. And he certainly is not alone in believing gross domestic product (GDP) will “snap back” in the second quarter. However, Mr. Moody may have a problem. For one thing, inflation-adjusted spending
At last, this is the final article in my series showing you what I am doing to cope with an unexpected job loss after middle age, but before retirement age. The first installment, titled Part 1, was introductory. In Part 2, I began to explore my strategy in asset allocation and I covered the Business Development Companies I chose for my portfolio. In Parts 3, 4, and 5 I explored my Real Estate Investment Trust choices, banks and energy companies, and utility companies. In Part 6 and 7, I looked at the largest of my categories which I call "USA Industrials." Today, I will discuss preferred stocks and foreign stocks, and then I will wrap this all up and grade my portfolio on performance to date. Some may disagree with my logic, some may complain that I have the advantage of age
In the history of the NBA Finals, no team had ever come back from a 3-1 deficit. Miami Heat believers explained that records were meant to be broken. And Lebron James asked, “Why not us?”
To the dismay of some basketball fanatics, the San Antonio Spurs mercifully disposed of their inferior competition in the fifth game. History did not crumble; rather, it went with the odds. Equally compelling, a relative unknown in Kawhi Leonard earned the Most Valuable Player award for his play in the series; in this instance, history went against the high likelihood that an established superstar would hoist the trophy.
Along these lines, the S&P 500 has traded above its 200-day moving average for 394 trading sessions. That has never occurred in the history of the heralded benchmark. The previous record? 385 trading days in the mid-90s. Granted, it may be difficult to quantify how improbable the