Investment Themes for Artificial Intelligence (AI)
December 8th, 2023
“Themes” for Investing in Artificial Intelligence The race to develop and deploy Artificial Intelligence (AI) tools is on. According to JPMorgan data, US and global private investment in AI totaled $53 billion and $94 billion, respectively, in 2021. This level of investment marked a more than fivefold increase in real terms compared to the fiveRead Entire Article…
Higher Interest Rates Help Some Companies, Hurt Others
October 13th, 2023
Are Higher Interest Rates Hurting Companies? Most readers and investors are aware that in the aftermath of the 2008 Global Financial Crisis, the Federal Reserve lowered interest rates to the zero bound, drastically reducing the cost of capital. Interest rates started to tick back up – slowly – in the late 2010s, but then theRead Entire Article…
“A Sure Thing” is Usually the Riskiest Investment of All
August 31st, 2023
Another Reason It’s So Important to Manage Risk For investors seeking attractive long-term returns, there are a lot of risks to navigate when investing in the capital markets. Fortunately, there are also a lot of ways to manage those risks.1 Some risks are very familiar to most investors. Take concentration risk, for example. While investingRead Entire Article…
A Potential Headwind for Big Tech is Looming
August 4th, 2023
A Potential Headwind for Big Tech That No One is Talking About The U.S. Technology sector has delivered blistering returns so far in 2023. Through the end of June, the sector was up +39%, more than double the S&P 500’s 16.2% year-to-date return. Investors should recall, however, that these positive returns follow a dismal 2022,Read Entire Article…
The Current Tech Rally is Driven by AI…and the Fed.
July 11th, 2023
What’s Driving the Current Tech Rally? Artificial Intelligence and the Fed Stocks posted a strong rally in the first half of 2023, but many market-watchers are quick to point out that there’s really one category responsible for a lion’s share of the gains: mega-cap tech stocks. The chart below demonstrates tech’s leadership. The tech-heavy NasdaqRead Entire Article…
How to Avoid Getting Burned by Chasing Heat in the Market
June 15th, 2023
A Stock Market Ripe for Chasing Heat Many investors have likely seen statistics highlighting a lack of breadth in equity markets in 2023. This storyline isn’t new. Many readers may remember past years when the ‘FAANG’ and other key technology stocks were the primary drivers of returns. This year, the tech giants are back, withRead Entire Article…
June 12th, 2023 Are Bonds No Longer a Good Volatility Hedge? Most readers are aware of the ongoing volatility in the stock market. Generally speaking, selling pressure in the stock market should mean that bonds – and in particular U.S. Treasuries – are holding their own and maybe even zigging where stocks are zagging. But that has not
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Can Policymakers Handle Four Economic Issues at Once?
May 26th, 2023
Can U.S. Policymakers Navigate Four Issues at Once? At the beginning of the year, U.S. policymakers were dealing with a tangible dilemma. They needed to wage the fight against inflation without damaging economic growth too much. In the few months since, the dilemma turned into a “trilemma,” as the U.S. experienced two of the biggestRead Entire Article…