Before getting to my thoughts on how likely it is that both stocks and bonds crater together, let’s look at the historical track record of a 50/50 stock/bond portfolio using 5 year total returns (ensuing performance matches up with starting year): The only time this mix of stocks and b...
Other things that can lead to bear markets are big events that threaten corporate profits. For example, that drop in stocks we looked at from 2020 was caused by the beginning of the coronavirus pandemic, when inves...
After the Fall: What to Do Now Hold Your Stocks, Experts Say. Some Even Say Buy More; and Consider Bonds
1929. Previously, on October 24th, Black Thursday, stocks had declined by 10% before rebounding within the same day, signaling trouble. Numerous causes for the crash are often cited and the topic is still
It is hard to know whether this current trend will continue to push stocks further down, or if we will see a bounce back soon. If I had to guess, I think there is still some time to prepare before things start to look really bad. Here’s a chart that shows the change in corporate...
Asset price bubbles occur when prices for a particular asset rise far above the item's real value. Historical examples of asset bubbles include houses, internet stocks, gold, and even tulip bulbs and baseball cards. Sooner or later, the high prices become unsustainable and they fall dramatically...
The stock market performed well in 2021, and many winning stocks more than doubled. Many of those same stocks crashed in 2022 after the FOMO died down and investors looked at valuations. Bullish markets can lead to significant FOMO, but what about bearish markets? These market cycles also pla...
The London Stock Exchange*, located in the heart of London, is one of the world's largest centers for trading stocks and bonds. It is also the most international of all the world's stock exchanges, with around 3,000 companies from over 70 countries admitted to trading on its markets. 伦...
In the 1920s, what did businesses and industries do that caused the economy to slow down? (i) They overproduced goods. (ii) They hired more workers. (iii) They stopped buying stocks. (iv) They bought stocks on margin. What investment has the greatest return during a global financial cri...
aims to provide a realistic appraisal of an institution’s or company’s current financial situation, and it is a legitimate and widely used practice. However, in some cases, the method can be manipulated, since MTM is not based on actual cost but onfair value, which is harder to pin ...