Author Archives: Rick Pendergraft

October’s Downturn in Stocks Suggests We Are in Risk-Off Mode

October was an ugly month for stock indices around the world and the domestic ones were no exception. The four main U.S. indices all dropped significantly, and eight of the 10 main sectors moved lower. The few sectors and asset classes that moved higher in October are all considered “defensive” investments. Looking at the indices first, we see that the ...

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Think You’re Having a Bad Week? Jeff Bezos has lost over $20 Billion in the Last Five Days

When Amazon (Nasdaq: AMZN) reported earnings last Thursday evening, the company disappointed investors when its revenue fell short of analysts’ estimates and the company issued a fourth-quarter outlook that was below analysts’ expectations. Since the earnings report the stock is down almost 16% as I write this. The stock dropped 7.8% on Friday, it dropped another 6.3% on Monday, and ...

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A Common Sense, Unemotional Approach to Asset Allocation that Can Help Protect Your Portfolio

In the movie Wall Street, the iconic character of Gordo Gekko told a young Bud Fox, “Don’t get emotional about stocks.” While the movie is fictional and Gekko was using inside information, there is tremendous value in the advice he gave. Don’t get emotional about stocks. After the huge selloff on Wednesday, many investors are probably feeling rather emotional about ...

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Powell: “We May Go Past Neutral”

Fed Chairman Powell spooked the market again this week and that is not the first time he has done that this year. In a speech co-hosted by The Atlantic Magazine and the Aspen Institute, Powell made comments that sent bond prices tumbling and yields jumping. Essentially he explained that he sees three stages for interest rates—accommodative, neutral, and restrictive. Powell ...

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