Multiple Compression: 7 Reasons Why the Market is Selling Off

January is off to a no good, very bad, terrible start to the year. We’ve seen three consecutive down weeks and some very painful corrections in individual names like Zoom, Peloton, and Moderna, who are all down more than 40% from their 52-week highs. Why is there such a bloodbath in stocks right now? The […]

What is Tapering and Why Is It Important?

Graph showing 10yr Bond Yield after tapering

You may have heard the term “tapering” if you’ve been following the news lately. The Federal Reserve (Fed) has many tools it can use to stimulate the economy, which includes purchasing bonds in the open markets. Tapering refers to the Fed cutting back on its bond purchases (i.e. “tapering down”). The term goes back to […]

Why interest rates are killing your portfolio

Matt Bacon         March 12, 2021 Executive Summary – Bond yields moved more than two standard deviations since January 1st. Equity markets can’t handle that much movement that quickly. This led to volatility with a sell-off in long dated bonds and growth stocks with high multiples (mostly tech). Interest rates look like they have stabilized. Certain […]

The Fed Spoke. Markets Shrugged.

Matt Bacon         Sep 17, 2020 The Federal Open Market Committee met yesterday and left interest rates unchanged. We weren’t surprised. General economic conditions are poor and will likely remain poor until the public health crisis brought about by the pandemic is resolved. The Fed will need to maintain what they call an “accommodative” stance until […]