At a time when there is so much angst on the damage the escalating trade war may have on corporate profits, we seem to be losing focus on the fact corporations are expected to post some impressive earnings growth over the next few years. The biggest boost in profit expectations
Tariffs and Trade Wars are dominating the headlines. Stock market participants are worried and the market indices have been falling every time one of the sides announces a new tariff or other restrictions on trade. Whenever markets start falling emotions begin to take over. The logic is “stocks dropped
Availability Bias: an information-processing bias in which people take a heuristic (mental shortcut or rule-of-thumb) approach to estimating the probability of an outcome based on how easily the outcome comes to mind. Easily recalled outcomes are often perceived as being more likely than those that are harder to recall or
It was 2010 when I first began having to answer concerns about rising interest rates. The media had picked up on the Wall Street story that rates were destined to rise which was bad for bonds. Their recommendation was to sell bonds and buy stocks. Focusing only on returns this
After 20 years with SEM I should not be surprised to see how many people get sucked into the late stages of a bull market. We all have heard the key to investing – “buy low, sell high.” Unfortunately, our brains typically trick us into forgetting this wisdom.
