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Matt's Market Insights

Latest Articles

Thankful for Growth

By Matthew Kerkhoff

 

This economy may not be perfect, but it’s the only one we’ve got, so let’s be thankful for the many positive developments we’re seeing both here in the states and across the globe. This week, as you sit down with loved ones, take a moment to appreciate how good things truly are right now.

 

Not only is the U.S. economy growing at the fastest rate in years, we’re seeing healthy developments in many areas around the world. For the first time since the great recession, one can utter the words “synchronized global recovery” without being seen as a total nut case.

 

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Economic Momentum and Virtuous Cycles

By Matthew Kerkhoff

 

When most people hear the term momentum, they think about classical physics – the idea that an object in motion stays in motion, unless otherwise disturbed. Those who spend their lives watching prices tick are familiar with another type of momentum – price momentum.

 

This refers to the empirically observed tendency for rising prices to keep rising, and falling prices to keep falling. Price momentum is a very powerful driver of asset prices, with its roots in behavioral psychology, but today I want to talk about a different type of momentum – economic momentum.

 

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How to Buy Stocks for Half Price (Part 2)

By Matthew Kerkhoff

 

Greetings, and welcome back for another installment of our ongoing options series. In case you’re just joining us, this series is designed to help you understand how options can be used in a portfolio to enhance returns and minimize risk.

 

In our last installment, we began a discussion on how to use deep-in-the-money calls to purchase stocks for half price (or less). Today, we’re going to continue that conversation, further illuminating the benefits one can derive by using call options in place of owning shares of stock.

 

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Stop Yourself From Giving Back Those Gains

By Matthew Kerkhoff

 

The major averages are setting new record highs, the U.S. economy is maintaining its slow but steady expansion, and the global economy appears to be picking up steam. In an environment like this, one of the best things we can do as investors is not overthink the situation, but instead sit back and allow the primary trend to express itself.

 

Rather than provide you with another round of data suggesting the expansion is likely to continue, I thought we would talk portfolio strategy today and go over the pros and cons of using stop orders.

 

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Global Growth Cues Abound

By Matthew Kerkhoff

 

Sometimes stock market rallies can be so powerful that you just have to grab ahold of something sturdy and hang on. Every once in a while, the upward surge can be so strong that it feels as though it’s fake – too much wealth being created in too short a time, inevitably destined to evaporate.

 

The last 12 months have felt that way. With the major averages up anywhere from 19–26%, many investors are logging in to see account balances that have never been this high.

 

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