Headlines are crafted with a goal of grabbing your attention. They are designed to get you to buy, click, or react. And they often do this not by focusing on topics that engage the areas of your brain responsible for logic and reason, but rather the more primal elements of greed and fear. Even armed with that knowledge, their siren song is hard to resist. Take for example the widely discussed financial topic of the moment—inflation. Reading headlines like, “The Specter of ... [Continue Reading]
Articles and resources related to Market Conditions.
Markets, Values, and Expectations Are in a Much Different Place Now On this day one year ago, the S&P 500 closed at 2,237. 1 Investor pessimism about the ramifications of a global pandemic were at a peak, and it was becoming clearer that this health crisis was going to turn into a severe economic downturn. The S&P 500 closed that day down 33.9% from its all-time high of 3,386, set just a few weeks earlier on February 19. 2 The intensity of this market ... [Continue Reading]
Reflecting on a year gone by is often, at least to some extent, an exercise in revisionist history. This isn’t necessarily a bad thing; many of the differences between our memories and experiences are minor and inconsequential. In some cases, the variations in these realities can help us persevere and move out of the past and into future endeavors. But as investors, revising the memories of the past can be problematic and potentially hinder future success. Behavioral finance is the study of ... [Continue Reading]
Many market commentators are clamoring over the recent performance of markets as they respond to positive vaccine news and clarity around the outcome of our presidential election. These events have driven stock markets higher, notably small value stocks. Using Russell index data, we’ve seen small value companies rise 23.6% from October 1 through November 30, while large growth stocks have risen by 6.5%. 1 This outperformance of small value by 17.1% over such a short period has commentators ... [Continue Reading]
As a companion to the article CCM Senior Investment Strategist James Yaworski, CFA, wrote—Déjà Vu—2020 or 1999?—CCM Founder and CEO Greg Carlson, CFP® interviews James to gather a bit more detail on how today's market performance compares to that of 1999. NOTE: The information provided in this video is intended for clients of Carlson Capital Management. We recommend that individuals consult with a professional advisor familiar with their particular situation for advice ... [Continue Reading]