by NelsonCorp Wealth Management | Feb 25, 2021 | Indicator Insights
Confidence is key when it comes to investing. However, like a skier who has leaned too far out over her skis, confidence can backfire when it becomes excessive. When everyone is overly optimistic at the same time, trades become crowded, and returns tend to...
by NelsonCorp Wealth Management | Feb 18, 2021 | Indicator Insights
This week’s featured indicator looks at global stock participation. We tend to focus heavily on U.S. stocks a lot of the time. But if the rest of the world is bullish on stocks, it means risk appetites, in general, are high. This tends to be a good...
by NelsonCorp Wealth Management | Feb 11, 2021 | Indicator Insights
This week’s featured indicator looks at nonfarm unit labor costs. Unit labor costs measure how much a business pays its workers to produce one unit of output. To find it, we take the total compensation of workers, including wages and benefits (such as health...
by NelsonCorp Wealth Management | Feb 4, 2021 | Indicator Insights
Go with the crowd until it reaches an extreme, and then do the opposite. This rejection of popular opinion at extremes is how we think about contrarian investing. There are many ways to do this, and we incorporate several of these into our analysis of risk....
by NelsonCorp Wealth Management | Jan 21, 2021 | Indicator Insights
For this week’s indicator, we look at the S&P 500’s earnings yield relative to interest rates. This is what we call a “relative valuation” indicator since it helps us determine when the stock market is over/undervalued using the current interest rate...
by NelsonCorp Wealth Management | Jan 14, 2021 | Indicator Insights
This week’s featured indicator looks at what is called margin debt. When you buy a security from a broker, you can pay all cash for the transaction or borrow some of the required capital from the broker. This is commonly referred to as buying on margin. As a...
