News

Can the stock market predict the outcome of the presidential elections? Not really, but there is some interesting data about the S&P 500 Index and the presidential elections.

The emotion of fear is at heightened levels. Just look at the panic buying at grocery stores and the panic selling in the stock market. Emotional decisions based on fear have usually proven to be the wrong decisions twelve months later.

On November 26, it was announced the Dow set its 100th record high under the Trump administration leadership. News like this helps fuel the excitement about gains made in the stock market and anticipated gains in the future. With investments climbing higher and higher, it is easy to get caught up in the emotion called the fear of missing out.

What is being reported today is exactly what was being reported September 2007, which was four months before the start of the decline of 2008. No one knows or can predict what will happen in the future, but it is interesting how history will often repeat itself.

With the Democrats in Congress starting a formal impeachment inquiry into President Donald Trump’s phone call with the Ukrainian President, some people are wondering what effect impeachment will have on the stock market. Three United States Presidents have previously experienced an impeachment inquiry:

Negative interest rates refer to a scenario in which cash deposits incur a charge for storage at a bank, rather than receiving interest income.

The Federal Reserve lowered interest rates 0.25% on July 31st. In doing so the Federal Reserve used up some of it’s ammunition for future needs. There are two tools (ammunition) the Federal Reserve uses to fight recessionary pressures.

Most analysts expect the Federal Reserve will lower interest rates by 0.25% at the end of July. Lowering interest rates is essentially bad news because it suggests the Federal Reserve sees economic weakness ahead.

Whether you like or dislike President Trump, we can all agree that he has stirred strong emotion in the hearts of the American people. He is also stirring strong emotions on the world stage with trade wars and tariffs. What are the concerns the president has and how might China respond?

After the stock market crash of 2008, the Federal Reserve, in an effort to stimulate the economy, reduced the cost of borrowing money by lowering interest rates to zero. We have been at historic lows in interest rates since 2009. An interest rate increase of 1% will cause a 10 year (duration) U.S. Treasury bond to drop -10% in value. There have been three interest rate increases the past few years