Expectations vs. Reality

Expectations vs. Reality

  Volatility comes in many different forms. But in the stock market, there are two commonly looked at measures of volatility that investors focus on. The first has to do with the VIX index or the so-called “fear gauge” of the stock market. It’s a forward-looking...
A Low?

A Low?

OVERVIEW   The U.S. stock market bounced last week after three straight weeks of declines. The S&P rose 6.45%, the Dow gained 5.39%, and the Nasdaq surged 7.49%. As for foreign markets, developed country stocks rose 2.8%, and emerging markets gained 0.65%....
Can’t Afford It

Can’t Afford It

  It’s getting a lot harder for the average American family to afford a house these days. As shown on our featured chart above, the Housing Affordability Index (blue line, top clip) has fallen off a cliff. Compared to last year, the index has dropped 44 points...
The Spread Widens

The Spread Widens

  This week, I want to focus on what is called a “credit spread” indicator. We highlighted the specific indicator above about a year ago. It measures high-yield (junk bond) credit spreads. In particular, it evaluates the distance between a safe asset—in this...