Blog Feed

Hedging Coronavirus Market Risk with Stock Options

Announcement: Please Note:  As of next week, The Market Commentator will be adopting a newsletter format.  We hope you will like the new look and feel. Option contracts can help investors can hedge downside risk when the potential for market loss is elevated. The expense associated with using options to establish a hedge can also be a drag on portfolio performance if the market subsequently heads higher. Whether option-based portfolio insurance makes sense for you depends on your investment objectives and market conditions. “Energy cannot be created or destroyed, it can only be changed from one form to another”  —…

The Market Week In Review

The U.S. stock market ended the week largely higher amid the Federal Reserve unveiling a $2.3 trillion lending program and post-pandemic optimism.  Interest rates also moved higher on this optimism as the 10-year treasury yield rose from 0.62% last week to 0.73% today.  Meanwhile, the spread between the 10-year treasury yield and the 2-year treasury yield continues to widen as the short end of the curve is virtually unchanged and currently sits at 0.50%.  Despite the optimism, the price of safe-haven gold still rose over 4.0% to $1,715 an ounce as monetary stimulus bolsters the metal and hinders the U.S….

Your IRA –It’s Really Amazing

Recent legislation has relaxed some of the restrictions and taxes on IRA distributions. For example, working persons may make contributions to an IRA regardless of age, and required minimum distributions have been suspended for 2020. Now may just be the very best time ever to convert a traditional IRA to a Roth. “The question isn’t at what age I want to retire, it’s at what income.” –George Foreman, former World Boxing Association Heavyweight Champion As I’m sure you already know, an individual retirement account (IRA) is a tax-deferred (and in some cases tax-free) retirement account that allows individuals to save…

The Market Week in Review

The U.S. stock market started the week fairly strong but ended the week lower amid grim coronavirus forecasts and skyrocketing unemployment claims.  Interest rates also moved lower on this news as the 10-year treasury yield fell from 0.72% last week to 0.62% today.  Meanwhile the spread between the 10-year treasury yield and the 2-year treasury yield narrowed from 0.47% to 0.39%.  The price of gold rose 1.5% to $1,648 an ounce as investors continue to buy up the safe-haven metal.  The price of crude oil, which has fallen over 50% since the beginning of March, jumped by 33.2% to $28.73…

The Market Week in Review

The U.S. stock market rallied back this week after a steep decline the week prior as the $2 trillion coronavirus stimulus bill heads to President Trump’s desk.  Consequently, interest rates moved lower as the 10-year treasury yield dropped from 0.92% to 0.72%.  Meanwhile the spread between the 10-year treasury yield and the 2-year treasury yield narrowed from 0.55% to 0.47%.  The price of gold rose nearly 9.0% on the week to $1,624 an ounce amid falling interest rates, a weaker U.S. dollar, Federal stimulus, and capital seeking a safe haven.  The price of crude oil continues to fall steeply, dropping…