Which of the figures below belong together? It’s obvious, even if analogies aren’t your strong suit, that A is like C and B is like D. A and C are not like B and D. The economic relevance of this simple visual exercise is this: At its March 2017 meeting, the Federal Open Market Read more […]
“Stocks Have Froth but No Bubble,” in today’s Wall Street Journal argues that while stocks are sitting at the highest valuations seen in many years, the market is not in a bubble. Despite similarities to early 2000 by some measures, other distinguishing features of trading bubbles (such as high trading volume and high leverage) are Read more […]
Gold often rallies in times of intense market turmoil, as the safe-haven asset is perceived as a hedge against economic and financial risk. This was one of the rationales for constructing the S&P 500 Dynamic Gold Hedged Index. What happened on Friday, June 24, 2016, clearly demonstrated the effectiveness of the strategy in terms of Read more […]