Caution! Private Equity enters 401K plans
The Department of Labor (DOL) recently issued guidance allowing employers to add retirement funds into their 401K investment lineup that invest in private equity. Private-equity funds, which fall into the broader category of alternative investments, have only been...
TINA – At What Cost?
TINA which stands for “There is no alternative” has had a major impact on stock markets this year to the point where it has become a moniker for strategy adopted by investors. COVID-19 virus has raised the day-to-day importance of many popular companies and investors...
A good life does not mean an easy one
US Debt levels hit a postwar record this week and the debt surpassed 100% of GDP for the April to June quarter. That would put the US in the company of a esoteric few - Japan, Italy and Greece. In the meantime, the Dow briefly topped 29000 before pulling back...
Life is all about choices
With the Democratic National Convention behind us and the Republican National Convention set to nominate Donald Trump for the Presidential Election in November, Wall Street has all but given up on monitoring corporate earnings and its entire focus is now on who will...
Will there be a Biden boom or bust?
With the market edging higher and the prospect of combative presidential debates to start soon, speculation is running rampant on how a Biden victory could impact the stock market. On the one hand, there are those who believe that the prospect of raising taxes and...
Taking advantage of low interest rates
With bank interest rates near zero, it makes zero sense to park money, other than the emergency fund, in savings or money market accounts. On the other hand, with the rate on 30-year mortgages recently hitting all-time lows below 3%, refinancing into a 15 year...
The economy depends on your spending
It is no secret that the Nasdaq has defied all headwinds and posted phenomenal returns amidst an environment that has been nothing but gloomy - record unemployment, massive GDP hole, coronavirus cases and deaths mounting by the day and no vaccine in sight. To put it...
Is it really time to bail?
“Bubble”, “Correction”, “Overvalued” etc. are now the cool words splashing around on TV and newspapers. Of course, none of these pundits saw the 35% decline coming earlier this year, nor the subsequent 40% recovery. Yet, somehow, they want us to believe that a repeat...
Fundamentally Detached
It is not often that the stock market becomes decoupled with corporate earnings and economic indicators. In many ways, economic indicators and corporate earnings drive stock market movements. But, in the era of social distancing when the whole world has been turned...