Markets Archives - Page 8 of 23 - Acropolis Investment Management

25 Jul 2022

Looking at Inflation, Backwards and Forwards

Inflation is hard to measure, which is why there are many ways to measure it. In addition to the Consumer Price Inflation (CPI) indexes that I’ve discussed in recent months, there are also Producer Price Indexes (PPI), the Personal Consumption Expenditures (PCE) indexes, the Gross Domestic Product (GDP) purchased price index, the GDP price index, and the GDP Price Deflator index. Oh my! While I don’t intend for this letter… Read More

By David Ott Tags: CPI, Economy, Inflation, Interest Rates, Investing, Markets, PCE, Wall Street

18 Jul 2022

Looking at Inflation, Backwards and Forwards

After quietly lying dormant for several decades, inflation is today’s big story in economics and markets. We all feel it at the grocery and pump, not to mention airline tickets, which are up more than a third from a year ago. It’s also dictating central bank policy, here and abroad, and everyone is rightly wondering whether that central bank policy will push global economies into a recession if it hasn’t… Read More

By David Ott Tags: Economy, Federal Reserve, Inflation, Markets, Wall Street

5 Jul 2022

Visualizing the Supply Chain

Growing up, I’d never heard of the supply chain. Toys were either on the shelves or there weren’t. Today, I hear relatively young kids talking about how the supply chain is preventing them from getting the toys they see online in less than three days. It’s amazing actually. Last week, I was looking at the New York Federal Reserve website trying to find their model that predicts recessions. I didn’t… Read More

By David Ott Tags: Economy, Markets, Supply Chain, Wall Street

27 Jun 2022

The Chance of Recession

Last week, I promised to discuss the odds of entering a recession in more depth and suggested that a financial crisis is less likely this time (but you never know). If you missed it, you can read it here. I also referenced a talk I saw by local Fed official Bill Emmons, who highlighted the possibility of a recession in 2018. He wasn’t right about that (well, he only said… Read More

By David Ott Tags: Economy, Federal Reserve, Markets, Recession, Unemployment Rate, Volatility, Wall Street

21 Jun 2022

And Now: Some Good News

The most salient question today is whether or not the US and the rest of the world will enter a recession. The answer, of course, is that, at some point, we will enter a recession. I think that a much harder question is when we enter a recession. I’ve heard a few people say that we’re in one now because the first quarter’s Gross Domestic Product (GDP) was negative, and… Read More

By David Ott Tags: Economy, Federal Reserve, Inflation, Markets, Recession, Volatility, Wall Street

13 Jun 2022

Inflation: A Deep Dive

I like to say that this newsletter is a mix of information on investing, financial planning, and economics. Regular readers know that I tend to focus most on investing, then financial planning, and economics is a distant third place. The current inflation environment, however, is forcing me to cover more economics, although the reality is that inflation materially impacts investing and planning. Today, I will look at inflation in isolation,… Read More

By David Ott Tags: Bonds, Economy, Inflation, Interest Rates, Markets, Volatility, Wall Street

6 Jun 2022

The Second-Most Important Element of Retirement Planning

I’ve focused on bear markets for the last two weeks because the stock market briefly dipped into bear market territory a few weeks ago. Since then, markets have recovered some of what was lost, although there is still a way to go to get back to even. One of my colleagues pointed out that as long as your portfolio could reliably provide the cash flow that you need to live… Read More

By David Ott Tags: Economy, Markets, Portfolio Strategy, Retirement, Retirement Spending, Wall Street

31 May 2022

A Look at Bear Markets, Part II

What a difference week makes! Last week, with the market down -18.2 percent from its all-time high and dipping into bear market territory at some points during the day, it felt like a bear market was a sure thing. Of course, it may still happen, but with stocks now down -12.8 percent, it doesn’t feel as imminent. Last week’s article focused heavily on bear markets, almost to the point of… Read More

By David Ott Tags: Bear Markets, Economy, Inflation, Interest Rates, Investing, Markets, Volatility, Wall Street

23 May 2022

A Look at Bear Markets

Even though the S&P 500 closed flat on Friday, it was down substantially in the middle of the day, down -2.3 percent in the late morning. At that moment, the S&P was down more than 20 percent from the all-time high set in January. Since a bear market is generally defined as a -20 percent decline from the recent peak (also called a drawdown), a lot of digital ink was… Read More

By David Ott Tags: Bear Markets, Economy, Inflation, Markets, Volatility, Wall Street

16 May 2022

Pricing Lessons from Private Investments

Investment strategies can be trendy. After the tech bubble, real estate investment trusts (REITs) were the rage. Then, just before the 2008 financial crisis, fundamental indexes, which weight stock positions by fundamentals like earnings, took hold. After the 2008 crash, managed futures and other alternatives were all the buzz. Then, it seems like the world couldn’t have enough factor funds. Now, the hottest thing going in the investment business are… Read More

By David Ott Tags: Factor Investing, Markets, Private Equity, Private Investment, Volatility, Wall Street

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