Investors fear rising interest rates. Since the start of the year, the 10-Year US Treasury yield is up 66% to 1.54%. It's still low, but the speed at which it climbed is worrying investors. For the past fourteen years, the yield on the 10-Year averaged 2.33%. The high was 4.01%, the low was .52%. Does it make sense to sell stocks as rates are climbing? Maybe.
Should you buy Bitcoin or other cryptocurrencies? Maybe. Bitcoin has performed well this year, up 107%. Though it has done well, it still hasn't eclipsed its all-time high set in 2017. If you want to buy Bitcoin, I would consider it an alternative investment, not as a substitute for cash or a money market fund.
The first few minutes of a flight are exhilarating as the pilot throttles the plane down the runway and points its nose heavenward. A stock market recovery is fast and furious, particularly after a steep drop. If you miss the start of a recovery, you will forego substantial gains. From the March 23 low, the Dow Jones, S&P 500, and NASDAQ have climbed substantially. The NASDAQ is up 57% while the S&P 500 and Dow Jones have risen more than 45%.
There Will be Blood, a 2007 movie starring Daniel Day-Lewis, is based on Upton Sinclair’s book Oil!, published in 1927. Mr. Sinclair’s novel dealt with the struggle of greed and fear that many faced in the early days of the oil industry in Southern California. If Mr. Sinclair were writing his book today, 93 years later, the storyline would probably be similar.
This decade is off to a tough start. The Coronavirus is disrupting global trade, travel, markets, and economies. The 2020 U.S. Presidential election will also add to the uncertainty and confusion. With increasing risk, should you buy, sell, or hold your existing investments?
Friends was a favorite television show of mine. Each Thursday night, I was glued to the TV to watch the eclectic mix of characters - Rachel, Phoebe, Joey, Monica, Chandler, and Ross. They made me laugh for ten years. The show worked because each character had unique and special talents.
My neighborhood is in the middle of an enormous construction project. It’s chaos. Dump trucks and bulldozers are moving massive amounts of dirt to expand our roads and intersections to handle more traffic. A new retail shopping center and access road are also under construction. Commuters are challenged with lane closures, lane shifts, and traffic jams.
Warren Buffett, Bill Gates and Jeff Bezos bet on themselves by concentrating most, if not all, their wealth in their company stock. Shares of Berkshire Hathaway, Microsoft, and Amazon have created enormous wealth for these billionaires, and they’re currently the three wealthiest individuals in the United States.