01-JANUARY 20-2021

Good morning. The big banks have nearly all reported earnings. And while many analysts have been concerned about how the banks can profit when interest rates are zero, those analysts are forgetting one key ingredient: The spread.  When rates are zero, depositors at the bank are getting zero percent returns.  The cost of capital to […]

01-JANUARY 13-2021

Good morning. After the extreme volatility of 2020 — or just last week — having a quiet day in the market feels like a rare treat.  But most days in the market are quiet.  Thanks to the gyrations of stocks, a decent annual return is borne out of small gyrations, day in and day out.  […]

01-JANUARY 06-2021

Good morning. Stocks had their best trading day of 2021 thanks to a rally.  Traders ignored the uncertainty of runoff elections in Georgia, which could tip the balance of power in the United States Senate. If anything, stocks seem more interested in moving based on Covid headlines rather than political concerns.  The latest news of […]

12-DECEMBER 30-2020

Good morning. The S&P 500 is looking set to rise about 15 percent for 2020.  That’s a great return for the average year.  For a year with a pandemic?  It’s exceptional.  At the start of the year, predicting the Dow over 30,000 seemed obvious.  By mid-March, it would sound crazy. Meanwhile, the market’s love of […]

12-DECEMBER 23-2020

Good morning. Markets are still digesting the latest stimulus package.  Costing about $2,700 per taxpayer, it gave each of them $600 back.  Unemployment benefits are being raised, temporarily.  That’s the good news.  But a number of items sound more like handouts than something designed to stimulate the economy. Billions of dollars are going to countries […]

12-DECEMBER 16-2020

Good morning. This may come as a shock, but some see the stock market getting ahead of itself.  The S&P 500 Index is now up over 12 percent in the past year.  That’s above the historical average.  It’s even more impressive when March’s rapid near-30 percent decline occurred. In order get to today’s prices, valuations […]

12-DECEMBER 09-2020

Good morning. In the new shot heard ‘round the world, 90-year-old UK citizen Margaret Keenan became the first Briton to receive the Pfizer vaccine or Covid-19.  While a full rollout will still take time – and needs to head across the pond to the United States, it’s a sign that a return to normal is […]