As the month of October winds down, the S&P 500 is on track for gains. According to data compiled by Yardeni Research, the average return for the index in October since 1928 is 0.52%. As you might expect, a key factor driving market sentiment is the upcoming U.S. presidential election, although investors have other concerns as well. As the calendar…
In October, the administration of President Joe Biden issued a rule requiring drinking water systems across the U.S. to identify and replace lead pipes within 10 years. To go with that rule, the Environmental Protection Agency announced $2.6 billion in newly available drinking water infrastructure funding through the Bipartisan Infrastructure Law. But that’s just a drop in the bucket when…
Technology stocks have led the stock market to new all-time highs in 2024. In fact, the Technology Select Sector SPDR ETF (ticker: XLK) has significantly outperformed the S&P 500’s total return in the past five years. For more than a decade, brief periods of tech sector underperformance have consistently been long-term buying opportunities, and that trend is likely to continue for…
The Federal Reserve delivered on expectations, making a major interest rate reduction in September. And Fed Chair Jerome Powell indicated that the bank is open to more rate cuts to help provide support for the job market heading into 2025. This has unleashed a round of exuberance in the stock market, with major indexes hitting new highs. Is it too…
Between Sept. 24 and Sept. 26, the Chinese government and the People’s Bank of China – the Chinese central bank – announced its largest economic stimulus program since the darkest days of the COVID-19 pandemic. Public statements surrounding the move indicate that even more economic and fiscal stimulus is forthcoming. Wall Street took immediate notice. Some major Chinese companies such…
The stock market continues notching new all-time highs. Sentiment is running hot amid the Federal Reserve’s new interest rate cutting campaign. In theory, lower interest rates could help boost demand for credit and give a major boost to sectors like housing and automobiles. Also, there is the perception that valuation ratios for stocks should expand as the cost of capital…
With three months left in 2024, U.S. health care stocks are out of sick bay and up 12.3% on a year-to-date basis, as measured by the S&P 500 Health Care Index. While health care stocks continue to move in the right direction, consistently trailing the main S&P equities index is not what sector investors had in mind. Yet the industry…
Contrary to popular belief, achieving diversification in investing goes beyond simply not “putting all your eggs in one basket.” Owning shares in multiple companies doesn’t necessarily mean an investor’s portfolio is diversified. For real diversification, a broader approach is essential – one that spans various asset classes including bonds, cash, commodities, precious metals and even alternative investments. Basically, a diversified portfolio can be…
In the past 90 years, dividends have accounted for about 40% of the total stock market return. The combination of a rising stock price and a regular dividend can work wonders for long-term returns. Dividends from high-quality stocks can also be a reliable source of income during economic downturns. Fortunately, there are plenty of dividend stocks out there that don’t…
On Sept. 12, the European Central Bank announced that, for the second time in three months, it was cutting its key interest rate. While the move was not altogether unexpected, it did reinforce the belief that the U.S. Federal Reserve would soon embark on a similar program of rate cuts. World financial markets now widely expect the Fed to announce…