I will focus solely on stimulus from US Federal Reserve as our base given it’s role as a global currency. In 2008, the Economic Stimulus Act came at a cost of $152 billion, providing tax rebates for low-middle class earners along with business incentives. In 2009, the American Recovery and Reinvestment Act cost $831 billion [...]
In 2012 The IMF studied the correlation between credit-default-swap spreads and various economic indicators. Long term indicators—for deficits, economic growth and spending on pensions and health care—had little impact on spreads. But larger short term primary deficits (which exclude interest) were associated with notably wider spreads. So, too, was weaker current-year growth. Solvency should be [...]
Market timing often works against investors, and jumping in and out of the market typically results in poor returns. It is important to stick with an asset allocation plan consistent with your time horizon, financial situation, and risk tolerance. Many investors don’t reach their investing goals because they get distracted by rising markets and end [...]
The theme this month is VALUE. Talk on the street (and by street I mean dissemination through public channels) is that big money is moving back into value stocks. Since August 2019, many stocks have rebounded 10-30%, and indexes like the TSX are breaching all-time highs. Followers of this blog know that I have been [...]
Investors love dividends. It’s no secret. All you have to do is search “dividend investing” on Google to see just how many websites, bloggers and media moguls are championing this strategy - present company included.The truth is this: dividends count. But they aren’t everything. Time horizon and dividends matter.So do cycles in the stock market. [...]
