Despite the instability of the American economy in recent years, the price of electricity has remained relatively stable. In contrast, the price of gasoline has recently skyrocketed due to a decrease in supply and other global factors, including the war in Europe. There are several reasons for this discrepancy. First, electricity is produced primarily from […]
Over the last quarter, the VIX volatility index rose sharply due to all the uncertainty in the market. This month we want to discuss volatility’s role in the markets and what you need to know to understand how volatility impacts prices. We use volatility to measure the amount of risk in the capital markets. It […]
This week marks an important moment for the stock market as companies begin to report their Q1 earnings. With America beginning to open following pandemic restrictions, there is a lot of optimism surrounding this quarter. However, rising interest rates may put a damper on this enthusiasm. The market is still holding its breath as the […]
As the Russian invasion of Ukraine plunged the global markets into a frenzy, we must discuss how international conflicts impact the U.S. stock market. On the surface, it would appear that global conflict would harm stock prices. After all, who wants to invest in a company whose another country might target products or services in […]
Market corrections draw attention from everyone; speculators, investors, retail traders, and anyone else you can think of probably has an opinion on when the next market downturn will be and its overall economic impact. While we diligently watch the global markets, we want to highlight some statistics that are not as exciting as predicting the […]
For the first time in history, the S&P 500 is dominated by the top six stocks. Roughly 25% of the index’s market capitalization is comprised of Facebook (now Meta), Amazon, Apple, Microsoft, Tesla, and Google (Alphabet). Their domination of the index is bigger than any other bubble or period, including the Dot Com bubble. What’s […]
Congress passed the Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Act) on November 6th. This $1.2 trillion package is one of the largest ever passed, and it represented a key economic milestone for The Biden Administration. According to the White House, the bill will “rebuild America’s roads, bridges, and rails, expand access to clean drinking […]
Third quarter earnings are led by strong performance in the financial sector looking towards a staggering 45% year-over-year growth for corporate earnings according to Fidelity. This is the fourth quarter in a row that corporate earnings trended towards a surprise upside, helped in large part by a strong boost in commodity prices due to increased […]
The London interbank offered rate (LIBOR) is one of the most famous and essential financial benchmarks in the world because it dictated how interest rates change for both commercial and consumer debt. However, after a series of scandals and a lack of quantitative substance, the secured overnight financing rate (SOFR) will replace LIBOR in the […]
August continues the trend of all-time highs for the equity markets, which is boosting confidence in derivatives, cryptocurrencies, and other alternative investments. The combination of strong consumer demand, impressive Q2 quarterly earnings, and economic optimism pushed the Dow Jones, Nasdaq, and S&P 500 to record highs, thanks in large part to outperformance by many financial […]
