Risk On!

Risk On!

  This week’s indicator is called the Risk-On/Risk-Off Indicator, or RO/RO indicator for short. It’s designed to gauge the relative risk tolerance in the investments landscape. In other words, it is a gauge of economic confidence. The Risk-On Index, shown in the...
The Unemployment Paradox

The Unemployment Paradox

  The unemployment rate is the one economic indicator most people are likely familiar with. To state the obvious, we don’t like a high unemployment rate; it means people are out of a job, and that’s not good for anyone. But this week’s featured indicator shows...
Catching the Wave

Catching the Wave

  Investors often find themselves confused and overwhelmed amid the vast sea of financial information. That’s why we rely on a few fundamental investing principles to navigate our decision-making process. One such principle has to do with the importance of...
Great Expectations

Great Expectations

  For this week’s indicator, we’re going to take a look at stock market earnings and how they can be used to forecast stock market returns. In the top part of the chart above, we have plotted the S&P 500 Index’s monthly close (green line), which we’ll be...
Getting Liquid

Getting Liquid

  There’s this amusing scene in the 2000 movie Boiler Room where Ben Affleck’s character boasts about his wealth to a room full of interns. He proudly mentions his luxurious car, beautiful house, and most importantly, he says, “I am liquid.” By...