Investment Strategy Insights

Chasing an arbitrary index that is 100% invested in the equity market requires you to take on far more risk than you most likely realize.

As COVID-19 uncertainty starts normalizing, social investing subsiding (post-stimulus checks), and stock market appreciation stalling (compared to mid- 2020 and early 2021 levels), many investors began to seek answers to the most coveted questions in finance: "When is the next market bubble?", "What is the catalyst of this market bubble?" and "How do we (investors) profit or avoid its shockwaves?"

Over the long term, confusing market crashes and bear markets can be detrimental to investor outcomes. Yet, this is what Morningstar did recently in discussing the market correction in 2020.

The convergence of ultra-easy fiscal and monetary policy with global supply chain disruptions, which became ever more prominent as U.S. consumers, having saved around 8% of GDP began to unleash their pent-up demand, resulted in inflation indicators and debates exploding higher.

The recent NFIB survey suggests we are only in an economic recovery, not an expansion. Such was a point I made with Daniel Lacalle in a recent podcast.

Following strong performance and record issuance of convertible bonds over the last several years, investors are beginning to take notice of the attractive characteristics of this unique asset class.

Are stocks “cheap,” or is this just another bullish “rationalization.” Such was the suggestion by the consistently bullish Brian Wesbury of First Trust in a research note entitled “Yes, Stocks Are Cheap.”

Are stocks “cheap,” or is this just another bullish “rationalization.” Such was the suggestion by the consistently bullish Brian Wesbury of First Trust in a research note entitled “Yes, Stocks Are Cheap.”