This past week has been quite a rollercoaster in the stock market. Can you believe the fluctuations? What’s causing all this volatility?
Bill Gross, often referred to as the “Bond King,” warns that “the good times are over.” He anticipates “negative returns for many asset classes” as the year unfolds. Furthermore, he suggests that plummeting oil prices and a robust U.S. dollar may hinder the Federal Reserve from increasing interest rates.
We share Gross’s outlook that 2015 is likely to present challenges for the stock market. Unlike the minimal volatility seen in 2014, this year is already showing signs of significant price fluctuations, as confirmed by the first week’s trading activity.
For example, early in the week, stocks experienced substantial losses. The DOW plummeted by 320 points on Monday and fell another 133 points on Tuesday. However, mid-week saw a rebound, with the DOW surging 212 points on Wednesday, followed by another impressive jump of 323 points the next day.
No one can definitively predict how the week will conclude, but uncertainty remains the order of the day. Continue reading
This past weekend, we examined various expert recommendations for investing in 2015. The suggestions varied widely, offering both simple and practical advice, such as paying down adjustable-rate loans before interest rates increase. Saving 10 to 15 percent of your gross income for retirement also seems like sound advice.
However, some ideas appeared attractive initially, but lost their appeal upon deeper reflection.
For instance, National Economic Forecaster Robert Genetiski advises against making investment decisions based solely on short-term forecasts of dramatic gains or heavy losses. While avoiding impulsive decisions based on stock tips is sensible, ignoring potential risks is shortsighted.
At the Economic Prism, we believe it is crucial to weigh even the worst-case scenarios when making investment choices. Just because a disaster seems unlikely doesn’t mean it should be dismissed, particularly when the consequences could be severe. Continue reading
Throughout history, we have witnessed numerous misguided ideas. Take rap music or legal tender laws, for example. Yet the true measure of a poor idea is its potential for widespread harm.
A warning system, akin to an air raid siren, would be beneficial to help us avoid the latest destructive notion. When a bad idea pairs with a compelling narrative, it can lead countless individuals down a path of self-destruction. Once this occurs, there is often no turning back; such ideas tend to breed further destruction.
Communism serves as a prime example, wreaking havoc in the 20th century. The Soviet Union, confident in its intelligence, concocted five-year plans for what they termed the centralized development of their economy.
The first of these plans aimed to realize the grand vision of collective farming. What could be more efficient than having bureaucrats in Moscow dictate crop choices and acreage? Continue reading
As we approach the New Year, we find ourselves filled with hopes and dreams for what lies ahead. We believe that 2015 will be the year you finally attain all you deserve. But what else can we anticipate?
Today, we gauge the winds of change as we look ahead to 2015. Although this process lacks precision, forecasting the future is more of an art than a science.
Yet, this method is as reliable as any we’ve encountered. It undeniably surpasses the approach of extending a trend line into the future, which can be misleading—past performance does not guarantee future results.
Consequently, pursuing last year’s top performers can often lead to financial loss, as it typically involves buying at inflated prices. On the other hand, investing in undervalued companies wrestling with tough industry conditions can yield better returns. Continue reading
### Introduction
As we step into a new year, the stock market’s volatility leaves many wondering about the direction it will take. Expert predictions suggest turbulence ahead, prompting investors to reconsider their strategies. This collection of insights explores current trends, investment recommendations, and the implications of various economic forecasts.
### Conclusion
Navigating the stock market in 2015 presents both challenges and opportunities. While expert opinions provide valuable guidance, thoughtful consideration of risks remains essential. Investors should remain vigilant and adaptive as they approach this tumultuous financial landscape.
