Contact Us
855-RIA-PLAN (855-742-7526)
Daily Update
Ben Bernanke popularized the wealth effect theory during the financial crisis in 2008. In his words, “higher stock prices will boost consumer wealth and help increase confidenc...
The Market Drawdown Is Perfectly Normal
Given the fear as represented in investor surveys and various sentiment gauges a couple of weeks ago, one would think the recent market drawdown was significant. As a testimony to th...
UM Inflation Expectations May Oddly Signal Disinflation
The graph below, courtesy of Jeff Weniger, shows that since 1990, spikes in the University of Michigan (UM) consumer inflation expectation index to around 5% have preceded inflation...
The Key to Lower Inflation May Start with Stock Prices
The key to lower inflation may start with the stock market and feed into the economy rather than vice versa. The wealth effect describes the behavioral phenomenon where individualsâ€...
Retail Sales Are Better Than Advertised
Within the headline retail sales figure is a lesser-followed data point called the retail sales control group. Following the trend of both figures is important because although the h...
The FOMC Shifts To A Dovish Tone
As the market widely expected, the FOMC left the Fed Funds rate unchanged. However, the statement summarizing the meeting now includes an economic growth warning- “uncertainty a...
The Sentiment Bark Is Worse Than The Market’s Bite
The old saying that the bark is worse than the bite is a good description of the current state of the stock market and investors’ sentiment. The following quote from a recent
Transportation Stocks Continue To Lead Markets Lower
In our Commentary last week, we noted that Delta shares were down over ten percent due to th...
Orange Juice And Egg Prices Provide Welcome Relief
As we have mentioned numerous times, consumer sentiment greatly impacts economic activity. Accordingly, the price activity of particular goods can have an outsized influence on consu...
The Rotation To Value From Growth: What Comes Next?
In hindsight, markets are easy to assess, yet extremely challenging to forecast. For example, as we will show, it’s undeniable that value, particularly large-cap value stocks, have...
