Category: Markets

  • Diversification and Single Stock Risk

    A good friend, Mr. Jackson, asked me how he could invest his savings into Tesla stock so I told him I would write an article on his behalf explaining the importance of diversification. Don’t get me wrong taking single stock risks is a great way to obtain excess returns in the market. You shouldn’t expose…

  • Passive vs. Active Investing: Which was is for you?

    Let’s start out with comparing the two: Passive investing and active investing are two different approaches to investing that investors can choose from. Passive investing is a strategy that seeks to match the performance of a particular market or index, such as the S&P 500, rather than trying to outperform it. Passive investors typically invest…

  • The Consumer Strikes Back AGAIN!

    Despite recent volatility in the stock market, the US consumer remains resilient against all odds. In the United States, consumption accounts for a significant portion of GDP. According to the Bureau of Economic Analysis (BEA), personal consumption expenditures (PCE) accounted for approximately 68% of US GDP in 2021. This means that consumer spending on goods…

  • The Market and the Fed

    There seems to be an interesting dilemma between the Market and the Fed since the beginning of 2022 when the vicious hiking cycle was kicked off by Powell and friends. The market continues to get its hopes up every time there’s a slim chance of a pivot only for it to be crushed at the…

  • Top Three Stocks This Year

    Markets are on a tear this year! Let’s take a look at some of the hotter stocks in the S&P 500 that are outperforming the index. Warner Bros. Discovery (WBD) is up 50% year-to-date even with a more than 3% decline today. Investors have rallied behind this stock after it was spun off due to…

  • Markets so Far this Year

    Markets are off to a hot start in 2023 with growth assets taking the lead so far. Inflation has been cooling and the Fed is expected to slow its relentless hiking campaign which has set up growth assets for a nice rally. So far the tech have NASDAQ is up 12% this year followed by…