Market Volatility, Talking Heads & the Chinese NFL

Charts of the stock market going back 20, 30 or 40 years are reassuring because they depict a gradual rise in the value of US businesses. This represents the long term benefits of investing. We always say to focus on the long term, but the long term is of course made up of many short terms. Zoom in to any given year and the results appear much more chaotic. In 1987, the “flash crash” caused equities to drop 20% in a day but somehow stocks still finished the year in the black. More recently, in August of 2015, the Dow opened 1,000 points down on the way to a roughly flat year. Talk about volatility…

A Fall From Greece

You’ll have to forgive the pun. Greece really has fallen a long way in the last few years. Just in the past couple of days, I’ve seen headlines suggesting a deal between Greece and its creditors was close only to see another headline to the contrary, like an international high-stakes game of “Deal or No Deal”. As news of a potential Grexit (financial-speak for a Greek exit from the Eurozone) continues to make headlines and since a few clients have asked me recently why Greece continues to cause so many problems in the world economy, I thought I’d offer some thoughts…

U.S. Equity Markets: Hot or Cold?

Anyone watching the stock market over the last few weeks could be forgiven for thinking Wall Street has gone mad. Are stocks the genteel Dr. Jekyll or the corrosive Mr. Hyde? The short answer has been a bit of both.

The start of the latest bout of volatility was a very strong U.S. jobs report. Wait, good news caused the markets to throw a fit? Strangely enough, yes…