In economics, there are several different indicators that can tell us the state of the economy today (lagging indicators) and tomorrow (leading indicators). However, there is an unconventional indicator that is “reserved” by the banks that isn’t found in Econ 101 textbooks. This would be a balance sheet item known as loan loss reserves.
Fortunately, or unfortunately, I have had the privilege to live through a few market cycles. I’ve seen the highs and lows of each cycle. Speculative bubbles, in particular, do not repeat themselves exactly. They are always a little different and the asset class they take hostage also changes. Be it the junk bond boom
A new Market Update to welcome the New Year. Forecasting the year ahead is always a difficult task. After the craziness we saw in 2020, who would try to predict what is in store for us in 2021? I am going to start off the year with some of my main questions I have
The holidays are over. My kids have opened all their presents. I don’t know why I tend to dwell on things toward the end of the year. I assume it’s natural to reflect on the past year. Of course, 2020 has been pretty crazy. Time magazine said 2020 was the worst year ever. Sounds
'Twas the night before Christmas, when all through the city, The masked UPS man was still delivering, thinking "oh, what a pity". - Stockings stuffed with Purell were all hung with much care, In hopes of avoiding the coronavirus, stay home, beware! - The children were nestled, all snug in their beds, While pictures
My children have been particularly keen on poems recently. Especially my older son, Connor. I think they enjoy the tenor and rhythm of the poems, much like their favorite songs. It’s exciting to revisit old books from my childhood like Shel Silverstein’s classic Where the Sidewalk Ends. For those that don’t remember, the book
After a nice, but short break for Thanksgiving, the holiday season is now fully upon us. The typical kickoff to the holiday spending season is usually Black Friday, the frenzied shopping day after Thanksgiving. That’s usually when I start trying to figure out what to get my wife and kids along with my other
Last week was a quiet one prior to Thanksgiving. News headlines continue to focus on the drawn-out election results and Rudy Giuliani’s hair dye. However, what really bolstered markets last week was hope that a COVID vaccine is around the corner. Investors were certainly thankful for Pfizer and Moderna’s vaccine news. UK-based AstraZeneca has
I thought whatever outcome that would come from the post-election results would lead to an increase in volatility for the rest of that week. To my pleasant surprise, the markets didn’t react negatively to a projected President-Elect Joe Biden result. In fact, investors for the most part seemed to welcome the potential change to the
Election fatigue is a real thing. Surely, I’m not the only one who was clicking refresh on their favorite news app every fifteen minutes last week; hoping to catch the latest vote count in the must watch states. States like Pennsylvania (my home state), Arizona (which Fox news seemed to have called a bit
