The Dow Jones Industrial Average had its largest decline in history on Monday, February 5--dropping 1,175 points! The headlines practically wrote themselves and were too exciting not to print. This was the largest single day decline in history, as long as we’re measuring in points and not percentages. By that measurement, Monday's drop wasn’t even the biggest decline in this decade. In addition, the 4.6% slide wasn’t significant enough to register within the top 20 daily declines and, of course, ... [Continue Reading]
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Over the holidays, I sat at our kitchen table after breakfast, drinking coffee and reading the paper while my five-year-old rolled, sculpted, and ultimately smashed flat the hot pink Play-Doh that Santa so generously left in her stocking Christmas morning. As her wonderfully messy creative expression came out through this oh-so familiar medium, I commented to her that it would be easy to read her palm with all the lines and creases of her hands so brightly illuminated. Not surprisingly, her ... [Continue Reading]
During our recent client event presentation at the Minnesota History Center, we discussed the importance of asking good questions. In a world in which most of us carry around small computers in our pockets that are capable of tapping into a seemingly infinite pool of data and information that is the internet, the value of the answers we find corresponds directly with the quality of the questions we ask. When exploring answers for many commonly asked financial questions, the risk that one faces ... [Continue Reading]
A combination of a weakening U.S. dollar and a decline in the U.S. consumer savings rate has driven corporate profits to all-time highs. This record-breaking earnings season has seen notable technology firms such as Apple and Facebook produce great earnings reports--but, it is notable that the record hasn't been achieved by a select few large companies. When we look at the S&P 500, more companies have been beating earnings and sales estimates than at any time in the past decade. As Jack ... [Continue Reading]
This fall the Federal Reserve intends to officially begin the process of unwinding their large balance sheet, marking an end to the program known as quantitative easing (QE). This program was initiated in 2008 as the U.S. economy was quickly heading into recession, led by the U.S. housing crisis. The Federal Reserve, over the following six years, purchased $4 Trillion worth of Treasury bonds and mortgage-backed securities in an attempt to prevent the recession from turning into another Great ... [Continue Reading]