Tag Archives: S&P500

Why Bonds Are Behaving Like Risky Assets

Since 1976, there have been eight years in which the S&P 500 declined. Bonds softened the stock market losses every time. When stocks went down, bonds went up. Since 1987, Alan Greenspan, and the Greenspan put, made sure of it. Yet, this time is different. Over the first nine months of 2022, bonds and stocks have fallen in tandem. And as stocks have fallen, Fed Chair Powell has hiked interest rates. Continue reading

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Finding Opportunities in a Bear Market

“I can calculate the motion of heavenly bodies, but not the madness of people.” The remark was made by Sir Isaac Newton in 1720 upon losing £20,000 – a substantial sum at the time – speculating on South Sea Company stock. The madness of people, as Newton painfully found, is incalculable. It defies logic. Runs on emotion. And is best observed from a safe distance. Continue reading

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Financial Repression 101

Bad ideas are flourishing like Washington lobbyists. Just look around. It’s near impossible to blink without countless crackpot ideas coming into view. What’s more, the worse an idea is, the more popular it becomes. Continue reading

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Grantham’s ‘Real McCoy’ Bubble in a World Gone Mad

On June 17, billionaire investor and co-founder of the Boston-based money manager GMO, Jeremy Grantham, sounded the alarm. During a CNBC interview with Wilfred Frost, Grantham warned that the U.S. stock market’s rebound amid the coronavirus pandemic is a bubble that will end up hurting many investors. Continue reading

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