It was a crazy week in the markets. South of the border the Fed took the stage and ‘shocked’ the markets (actually the move was leaked) with a 75 basis point rate hike. The markets initially liked the big move. Finally, the Fed will get serious about inflation. But then market makers changed their mind […]
Building the energy dividend portfolio.
When it comes to sectors, energy is the most useful inflation fighter. In fact it is the only sector that has delivered positive real returns across every inflationary period, looking back some 100 years of stock market history. Energy stocks also delivered incredible returns during the stagflationary period of the 1970’s and into the early […]
The all-weather portfolio. Ready for most anything.
I recently posted a portfolio concept for the all-weather portfolio for 2022. The idea behind an all-weather portfolio is that it can prosper during periods of sun, rain, storms, hurricanes, earthquakes and tsunamis. Of course, in the above analogy weather serves as a proxy for the economic conditions that might arrive. The all-weather portfolio is […]
The Russcession is coming!
There is a growing chorus that the invasion of Ukraine will lead to a global recession. The economic destruction and inflation that is being unleashed is formidable. We have spiking oil prices. Oil spikes cause recessions. Throw in the fact that central banks have to increase rates (tighten) into an already slowing economy and the […]
The inflation watch for investors.
One of the biggest risks to stocks is bonds. The great fear is inflation and a rising rate environment that might come along for the ride. But as I discussed in my most recent MoneySense post, a rising rate environment might not necessarily accompany inflation. After WWII, we had some meaningful inflation and rates stayed […]
The Sunday Reads. Scarcity cred, from David Bowie to Babe Ruth.
My recent MoneySense column stars David Bowie. He was much more than a music visionary. It’s almost as if David Bowie could see the future. He was a creative business man as well offering the Bowie Bonds that allowed him to buy back his music rights, as investors then profited from the success of his […]