Worth the Risk?

Worth the Risk?

  Is the stock market still worth the risk? This week’s chart paints a surprising picture. It measures something called the equity risk premium—the extra return investors expect from stocks compared to the safer 10-year U.S. Treasury bond. It’s shown as the...
Vol Drop

Vol Drop

  The big news this week, of course, was the election.  As always, the uncertainty it brought stirred things up in the financial markets, a trend we can see clearly in this week’s featured chart. At the top of the chart, we have the S&P 500 stock index, and...
America’s Edge

America’s Edge

  It’s perhaps no surprise to investors that America’s stock market has dominated the rest of the developed world in recent years.  But have you ever wondered why U.S. stocks have outshined? This week’s chart gives a big clue: economic strength.  When the U.S....
The Biggest and Best

The Biggest and Best

  This week’s chart shows that the biggest and best of the stock market are breaking out to all-time highs. The index, shown above, is the S&P 500 Top 50 Index. It’s a subset of the broader S&P 500 Index, focusing on the 50 largest companies by market...
The Fed/CAPE Connection

The Fed/CAPE Connection

  This week’s chart highlights a key connection between the Fed Funds Rate and stock market valuations, as measured by the CAPE ratio. But first, some definitions. The Fed Funds Rate is controlled by the Federal Reserve and influences all other interest rates....