ECNFIN

During the week of May 26–May 30, 2025, the best-performing asset classes were (see Table 1): The worst-performing asset classes for the week were: This week also marked the end of the second quarter of 2025. For the quarter, Bitcoin... Read More ›

During the week of May 19–May 23, 2025, the best-performing asset class was gold, with the iShares Gold Trust ETF (ticker: IAU) up 5.3% (see Table 1). Growing U.S. debt and high interest rates have made gold an attractive hedge... Read More ›

During the week of May 12 – May 16, 2025, technology stocks experienced significant positive appreciation, driven in part by relaxed export restrictions and deal-making initiatives by President Trump (see Table 1). Top-Performing Asset Classes: The biggest loser for the... Read More ›

During the week of May 5 – May 9, 2025, the major economic news was that the Federal Reserve maintained its interest rate range between 4.25% and 4.5%. The Fed emphasized that while the current economy appears stable, the future... Read More ›

The Federal Reserve announced today that it will maintain its short-term interest rate within the range of 4.25% to 4.5%. Federal Reserve Chair Jerome Powell described the economic outlook as “highly uncertain” but also noted that the economy remains stable.... Read More ›

Is there a preferred asset allocation that can consistently deliver positive risk-adjusted returns across all market environments? This paper analyzes 20 years of market data to answer that question. In this research paper, I analyze 20 years of stock market... Read More ›

As I have discussed in section 14, the stock market is informationally efficient. The efficient market hypothesis gained even more strength recently with the technological advances in commission-free trading, fiber-optic internet speed, and greater market participation. Most of the historical... Read More ›

During the week of April 28 – May 2, 2025, fixed income, gold, and oil lagged, while international and domestic equities outperformed (see Table 1). The worst-performing categories were: The top-performing categories included: Interestingly, for the second quarter to date,... Read More ›

The stock market is informationally efficient. It reflects nearly all available public information in stock prices. You have an opportunity to know about the company and the stock price as much as anybody else can legally. For beginner investors, selecting... Read More ›

The stock market has been highly volatile. As of April 30, 2025, the S&P 500 Index has recovered 62% of its losses from the year's low, yet remains approximately 9% below its year's high. With new Gross Domestic Product (GDP)... Read More ›

The financial markets are pretty efficient. High-frequency traders have fiber-optic cables in close proximity to major US stock exchanges. Many trades are done using computer algorithms. These trades are executed near the speed of light. Whenever you hear or see... Read More ›

You may remember a hype around GameStop and stories of investors turning $500 into $200,000. Stories like this can cause the investor to fall victim to the cognitive bias – bandwagon effect. Just because more and more people are buying... Read More ›

At some point, you may want to seek the help of a financial advisor. A financial advisor can provide education, guidance, and personalized strategies to help you reach your financial goals. They can also conduct research, manage your investments, and... Read More ›

From the market close on April 17th to the close on April 25th, the best-performing asset classes and sectors were: The lagging sectors during the same period were: Year-to-Date (YTD) Performance Highlights: On the downside (YTD): Disclosures:The analysis is based... Read More ›

Investing in individual company stocks may provide an attractive potential return, but it comes with both company-specific and market risk combined. Most investors like to brag about the high-performing stock picks they made during cocktail parties; it is very exciting... Read More ›

A diversified portfolio can create a more comfortable environment for investors to weather the ups and downs of the stock market. A well-diversified portfolio typically carries lower risk while maintaining potential upside. Investors are more likely to stay the course... Read More ›

The first step in building an investment portfolio is to understand your true risk tolerance before investing. How much risk can you tolerate both in theory and in practice? It is easy to fall a victim of being a risk... Read More ›

By now, you understand what it takes to build a sizable investment portfolio over time. John began investing $100 per month, with an assumed 12.5% annual return, he was able to accumulate $510,000 by the age of 50. But what... Read More ›

During the week of April 14–17, 2025, U.S. equities lagged, while international stocks, oil, and gold outperformed. The worst-performing categories were: The top-performing categories included: Fixed income held up well, with prices edging higher and yields dipping slightly. Interestingly, despite... Read More ›

You can open an investment account with as little as $100 today. Making regular contributions may significantly enhance your investment returns. Time is one of the most powerful tools in building wealth – early, consistent contributions can have the same... Read More ›

You should allow enough time for your investment strategy to succeed. Assuming your original investment thesis is sound, the longer you stay patient and avoid reacting impulsively to market news, the better your performance may be over time. However, it’s... Read More ›

Investors should keep cash savings in their bank accounts for rainy days. Cash reserves can serve as a hedge against unexpected future expenses (Ivan Sichkar, 2012). This is a prudent risk management strategy that may also enhance overall investment returns.... Read More ›

Selecting the right type of investment account may improve your after-tax investment returns. Most of the time, you will need to choose between taxable, tax-exempt, or tax-deferred account types. In many cases, it may be beneficial to have both taxable... Read More ›

Before, investing was primarily accessible to wealthy individuals. As a result, the stock market became heavily concentrated in the hands of the rich, allowing their wealth to grow steadily over time and widening the inequality gap. Today, the disparity is... Read More ›

When you invest today, you may earn a reward you can enjoy in the future. It's prudent to balance tomorrow's rewards with today's pleasures. Spend a portion of your monthly budget on enjoyment now, but also make sure to save... Read More ›

For the week of April 7–11, 2025, equity markets posted a strong rebound across several regions and sectors (Table 1). Some of the best-performing indices included: Equities recovered some of their steep recent losses, delivering solid performance for the week... Read More ›

Is stagflation around the corner? With inflationary risks rising, GDP contracting, and consumer sentiment falling sharply, signs are pointing toward a stagflationary environment. This article breaks down the latest economic data, what it means for investors, and how to position your portfolio to weather the storm

Inflation is cooling, with the latest CPI data showing a 2.4% increase over the past year—down from 2.8% in February and inching closer to the Federal Reserve's 2% target. While energy and housing costs are showing signs of decline, the Fed's preferred inflation gauge, the PCE, is still to come. Lower prices are good news for consumers, but the trend may also point to a broader economic slowdown.

Markets soared today after President Donald Trump paused tariff implementation for 90 days, with the NASDAQ-100 surging 12% and other major indexes up 9%. The rally reflects investor preference for clarity and diplomacy over protectionism. While today's gains are impressive, the sharp swing underscores how unpredictable markets can be—especially when driven by geopolitics beyond the control of businesses or consumers.

Markets are reacting in real-time to policy decisions, offering a live “grade” on economic direction. Despite promises of pro-business policies, domestic indexes like the Russell 2000 and NASDAQ-100 are struggling, while international markets show surprising resilience. This article explores the growing disconnect between government messaging and market outcomes—and what that means for investors.

As of April 7, 2025, the S&P 500 Index has experienced a sharp selloff, dropping nearly 10% over the past week. This sudden decline has led many investors to wonder whether the market is now trading at a more reasonable... Read More ›

This is the forecast of the S&P 500 Index for 1Q 2023. It is based on the linear regression model, where I use the Gross Domestic Product (GDP) to predict the value of the S&P 500 Index. This forecast tries... Read More ›

It is a combination of multiple negative factors that creates a worrisome diagnosis for already fragile economic health of the US economy. A sharp increase in oil prices from $22 in April 2020 to $120 in June 2022. The highest... Read More ›

Inflationary pressures are becoming less transitory and more long-lasting. Even before the horrific events in Ukraine, inflation was already very high. Additional sanctions on Russia added additional fuel to the fire of already hot inflation. Sanctions on Russia will also... Read More ›

This is the forecast of the S&P 500 Index for the 1Q 2022. It is based on the linear regression model where I use the Gross Domestic Product (GDP) to predict the value of the S&P 500 Index. This forecast... Read More ›

The fifteen investing principles create the foundation of investing. Before you go on to build your wealth castle, you need to understand how to build a strong foundation. This is the starting point of your investing journey. The learning process of being a successful investor only starts here and continues through your life

Oftentimes a successful investing requires the time commitment, ability, and wiliness to take risk. When it comes to the real life, very few investors have the luxury and wiliness to meet these conditions to become successful. In this paper, I analyze the stock market risk and highlight difficulties to remain calm and rational during volatile times. For risk averse investors, one of the solutions is to have a diversified portfolio. The simple 50/50 asset allocation strategy combines a broadly diversified equity index with long-term government bonds. It is one example of a simple diversification strategy.

President elect Joe Biden nominated Janet Yellen as the 78th United States secretary of the treasury. In my opinion, Janet Yellen will support aggressive fiscal stimulus of the US economy at the beginning of her new job.

How much will the stock market return in 2021? Is the stock market cheap or expensive?

Does it make sense to invest in government bonds now? Current valuation of government bonds became expensive. In this paper, I compare the total return on the iShares 20+ Year Treasury Bond ETF (ticker TLT) with the real yield on the 10-year US treasury bonds. By investing in the long-term US government bonds when the real rates are negative, makes such investment speculative and risky.

How did various stock markets around the world weather the Covid-19 pandemic? The degree of the stock market correction and recovery was different from one country to another.

For home buyers lower interest rates increases home affordability. As rates decline, the amount of money one can borrow increases while the monthly payments stays the same.

Investors may not be able to control their emotions, but they can control how they invest. For risk averse investors, selecting a model with lower volatility is a prudent decision. A risk averse investor is more likely to tolerate small losses and stay invested long-term with lower volatility portfolio

The US economy has a structural wage stagnation. For the last 34 years, wages have been growing at the effective real annual rate of 0.51%. Consumers who rely on salary alone, cannot increase discretionary spending too much. As discretionary spending declines, economic growth will slow down. This creates a risk for the next economic recession.

Passively managed funds can have a similar effect on the economy as systemically important financial institutions