The US equity market has been up strongly almost every year for the past few years. While gains are nice it is also important to remember that stocks do not always generate positive returns. To put it another way, losses are a feature of investing in the markets and investors have to deal with them …
Continue reading ‘High Losses Require Even Higher Gain To Break Even: Chart’ »
Bitcoin has soared more than 100% since the start of the year. Yesterday its price crossed the $38,000 mark according to The Block as shown in the chart below. Bitcoin prices were around $16,600 in the beginning of the year. Click to enlarge Source: Bitcoin price breaks past $38,000, carried on by ETF hype, The …
Continue reading ‘Bitcoin: The Best Performing Asset Class So Far This Year’ »
I have written many times in the past that investors should keep their long-term goals in mind and not worry too much about short-term gyrations of the market. While markets may be down one year they can come back roaring the next year. For instance, the S&P 500 was down over 20% in 2022 but …
Continue reading ‘Calendar Year S&P 500 Index Returns 1928-2022: Chart’ »
Billionaire Warren Buffett is one of the most celebrated investors of all time. He is often hyped by the media for his greatness and some loyal followers almost worship him as if he is the god. However he is not all that hyped up to be. It can be argued that he is riding on …
Continue reading ‘Why Retail Investors Should NOT Follow Warren Buffett for Managing Risk’ »
One of the factors that have been investors’ mind for the past many months has been inflation. Soaring inflation rates led the Federal Reserve to raise interest rates multiple times to tame inflation. Their effort might be bearing fruit soon. The recently release report from BLS showed inflation is cooling. The CPI rate was 3.2% …
Continue reading ‘Inflation Does Not Necessarily Affect Stock Returns’ »