The Market Week in Review

Equities rebounded from last week’s sell-off and finished this week substantially higher amid a more dovish speech from Federal Reserve Chairman, Jerome Powell.  Interest rates fell with the 10-year treasury yield dropping a moderate 4 basis points to 3.01%.  The spread between the 10-year treasury yield and the 2-year treasury narrowed by 5 basis points to 0.22%.  The price of gold rose a marginal 0.35% to $1,227.80 an ounce while the price of oil dropped 1.30% to $50.72 a barrel.  The U.S. dollar index was little changed from last week, rising from 96.60 to 97.20.   Index Started Week Ended…

Charitable Contributions from IRAs

Now that the holiday season has arrived and 2018 is drawing to a close, many of us will be contemplating end of the year charitable gifts.  Here are a couple of important tax breaks you will want to keep in mind when making charitable contributions.   Donations of Appreciated Securities.   One of the most tax-advantageous ways to make charitable gifts is to give appreciated stocks or other appreciated property rather than cash.  That’s because charitable donations do not trigger recognition of capital gains if the gift was owned by the donor for a year or more.  As a result,…

The Market Week in Review

The stock market finished the week significantly lower as tech and energy stocks sold-off.  Interest rates were little changed with the 10-year treasury yield dropping only 2 basis points to 3.05%.  The spread between the 10-year treasury yield and the 2-year treasury yield also showed little change, widening only by 1 basis point to 0.27%.  The price of gold was virtually unchanged at $1,223.50 an ounce, while the price of crude oil dropped 9.54% to $51.39 a barrel, as concerns regarding over supply continue to drive the price lower.  The U.S. dollar index rose from 96.44 to 96.90.   Index…

Do You Feel Lucky?

  Behavioral economics is the study of how human nature impacts investment decisions.  For example, “self-attribution bias” is the term behavioral economists use to refer to the human tendency to equate portfolio performance with skill.  However, luck has a much larger effect on how investments perform than most investors realize.   Michael Batnick’s Irrelevant Investor blog last week included a chart that does a great job of making this point.  It shows how a ten-year investment in the U.S. stock market (based on the S&P 500 Index) would have fared, based on different start dates.     If you asked…

The content found on this website is for informational purposes only and do not necessarily reflect the opinions or views of The Milwaukee Company or its employees. Nothing presented on this website should be regarded as investment advice or as a solicitation for the purchase or sale of any security or investment or the provision of investment advice.  Visitors to this site should conduct their own independent research before acting on any information found on this site.