Last month, the Federal Reserve cut the federal funds rate by 0.5% and that’s usually spelled good news for stocks. Data from the past 40 years shows that, after a rate cut, the S&P 500 has usually posted solid gains one year and three years later. But as with most things in the economy, it’s not always that simple. Types of Rate Cuts: Normalization, Panic, and Recession The Fed doesn’t cut rates in a vacuum. Understanding the context of the rate cut— whether it’s due to a panic, a recession, or simply the Federal Reserve balancing economic growth and inflation—can…

The smaller gold and silver stocks are mostly ignored by the major Wall Street institutions because the trading in them fails to provide the kind of liquidity they like. Nevertheless, these miners trade more or less in line with the majors in the sector and, lately, made it to new 52-week highs. Since they have smaller capitalizations than the big mining stocks, they are sometimes looked at as possible buy-out candidates. Sometimes, the smaller companies merge with other smallish companies. When that happens the price of the one being purchased can take off. Such instances don’t always take place but…

As family offices continue to evolve in a rapidly changing world, their reliance on technology is becoming more pronounced. The year 2024 witnessed significant breakthroughs in artificial intelligence, data analytics, and digital integration, and many of the emerging trends have simply accelerated. This digitization of wealth management is reshaping operations, investment, and risk management. However, it also presents challenges in selecting and integrating the right tools. Family offices now require essential tools like AI-powered analytics and cybersecurity frameworks for effective portfolio management and data security. However, as many are selecting tools for the first time, family offices need guidance on…

As the S&P 500 recently hit new highs, not every component in the large cap index made it up to the top. The five listed here actually went the other way: that is, they managed to break down enough to establish new lows. Each one has its reasons but the point is: not everything is wonderfully bullish right now. These 5 S&P 500 Stocks Hit New Lows. Borr Drilling. The stock this week broke below the late April/early May support level and kept going lower. You can see how the crossover of the 200-day moving average by the 50-day moving…

When you think about retirement, the first thing that might come to mind is that magic age when you’ll kick back, relax, and enjoy the fruits of your labor. For some, it’s 65, for others, maybe earlier or later. But how do you determine the right retirement age for you? It’s not a one-size-fits-all decision. The ideal retirement age is deeply personal and depends on various factors like your finances, lifestyle goals, and even your health. There are a few factors that you can assess to help you determine what may be right for you. 1. Assess Your Financial Situation…

As the U.S. heads into another presidential election, concerns are growing about potential delays in results and the risk of unrest, especially given the heightened polarization in recent years. After the 2020 election, a significant portion of the electorate questioned the legitimacy of results, leading to the January 6 attack on the Capitol. The peaceful transfer of power—a hallmark of American democracy—now seems less assured than in previous years, and the possibility of election-related unrest is real. For investors, this uncertainty adds a layer of complexity. How can you position your portfolio to withstand potential market volatility or economic disruption…

Within the S&P 500, 111 companies reported earnings last week, and 75% of S&P 500 firms reported better-than-expected earnings for the quarter. The third-quarter earnings season enters its busiest reporting week, with 170 S&P 500 companies scheduled to report. The Magnificent 7, consisting of Microsoft (MSFT), Meta Platforms (META), Amazon.com (AMZN), Apple (AAPL), NVIDIA (NVDA), Alphabet (GOOGL), and Tesla (TSLA), feature heavily in the upcoming earnings week. Five of the seven companies report earnings this week: Alphabet on Tuesday, Meta and Microsoft on Wednesday, and Amazon and Apple on Thursday. Tesla reported much better-than-expected earnings last week, and NVIDIA won’t…

In times of stock market uncertainty, investors often seek alternative investment avenues that provide similar benefits to the public stock market but with less direct stock market exposure. Endowments and high-net-worth families frequently turn to private equity for its potential to deliver stock market upside while mitigating stock market risk. If you’re unfamiliar with private equity, you can start with this article for an in-depth introduction. Types of Traditional Private Equity 1. Venture Capital (VC) Venture capital involves investing in startups at their early stages, making it the riskiest form of a private equity investment. However, diversifying across multiple startups…

With early voting already starting or soon to begin in many states, some investors wonder if they should change their stock exposure based on who wins the Presidential election on November 5. Looking at the stock performance during the terms of the last eight Presidents, which consisted of four Democrats and four Republicans, does not clearly show any stock market advantage to either party. Interestingly, the S&P 500’s annualized return during Obama’s and Trump’s presidency was an identical 16.3%. If one considers Kamala Harris’ possible administration as a continuation of Biden’s term, his leadership has clocked in with a respectable…

When we hear the word “wealth,” our minds usually jump straight to finances—bank accounts, investments, net worth. But here’s the thing: wealth is about so much more than just money. True wealth extends beyond the dollars and cents. It’s about well-being, relationships, and how we live our lives. Let’s break down a few key areas that contribute to a wealthy life, far beyond what’s in your wallet. 1. Health: The Foundation of Wealth It’s often said that “health is wealth,” and for good reason. Without good health, it becomes difficult to enjoy other aspects of life, including your finances. Think…