Changes Coming in Inflation Reporting

Changes Coming in Inflation Reporting

The Fed’s Bureau of Labor Statistics (BLS) recently announced changes to the way the Consumer Price Index (CPI) measures inflation.  The Fed’s February 12th announcement will include these newest changes.  The government constantly fiddles with the CPI calculations,...

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Seven Things Investors Can be Grateful for This Year

Seven Things Investors Can be Grateful for This Year

Often we commentators focus on problems facing investors.  Instead, I’d like to point out seven things that our clients have to be grateful for this past year. 1. Cash is making a comeback. It has been a long time since cash accounts paid anything above diddly....

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Are We in For a Lost Decade?

Are We in For a Lost Decade?

A frequent topic in the financial news recently has been the concept of a Lost Decade. The term first came into use in the 1990s after Japan’s Nikkei Index dropped over fifty percent and took 16 years to regain the 1990 level. (Source: Investopedia) My term for these...

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Snakes

Snakes

With the turbulent financial markets this year, I am often asked, “How are you doing with the market being so bad?”  I usually reply something along the lines of, “Pretty well.  At Shadowridge, we expected bear markets in both stocks and bonds and had plans...

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Just How Bad Are Things?

Just How Bad Are Things?

We all have heard someone complain about how bad things are these days, or how afraid they are about what the kids growing up today will have to deal with, or that the future looks bleaker each year, or, or, or.   World-weariness affects almost all of us at...

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What to Expect From Inflation?

What to Expect From Inflation?

Inflation has begun to moderate, largely due to our government’s move to destroy demand with high prices and pull money out of consumer’s hands via higher taxes.  Policies designed to limit supplies of energy are evidence of the government’s intent to raise gas...

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Why This Bear Market May Not Be Over Yet

Why This Bear Market May Not Be Over Yet

The stock market has improved a bit over the past couple of weeks, but this is not the time to get complacent and think this tough market is over and good times are back.  The US government must break a vicious circle of inflating interest rates before we can...

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Are Your Investments a Mess?

Are Your Investments a Mess?

Most Shadowridge clients already know that they don’t have too much to worry about in this market, because we’ve got you covered in that regard.  However, for the many non-clients who get this letter, like a neighbor who said their investments are a “mess” due to...

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The ESG Emperors Have No Clothes

The ESG Emperors Have No Clothes

Increased reporting on ESG investing has intrigued me since I noticed it a few years back. Articles have appeared with increasing frequency in virtually all industry rags about how “Advisers respond to consumer demand for ESG investments,” or “More investors demand...

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The Problem with Recessions

The Problem with Recessions

In the next few paragraphs, I’m going to give you a peek into the future and let you in on what we see unfolding in the economy and what impact stock market investors may see.  What we are seeing is an economic recession on the horizon.  There is a very high...

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How to Be a Genius

How to Be a Genius

Napoleon's definition of a military genius was "the man who can do the average thing when all those around him are going crazy." It's the same in investing — especially as markets get wild, as they've been these past few months.  It may be hard to tell from the...

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The Canary in the Coal Mine

The Canary in the Coal Mine

Many investors think of the stock markets as a giant cash register. Just put your shares in and take cash out. However, there is not an endless supply of cash in the markets. Someone must be on the other side of the cash register putting money in so you can take it...

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