Investors may not be able to control their emotions, but they can control how they invest. For risk averse investors, selecting a model with lower volatility is a prudent decision. A risk averse investor is more likely to tolerate small losses and stay invested long-term with lower volatility portfolio
This is my eighth annual forecast of the S&P 500 Index return for the year. It is based on the simple linear regression model. The model uses Gross Domestic Product (GDP) as explanatory variable to the performance of the S&P… Read More ›
Year 2019 could be a very good year for investors. The forecast model predicts the SP 500 Index to closed between 2,891 and 2,906 at the end of the year 2019. This represents the return between 15.36% and 15.96% for the year 2019. If this forecast is correct, the year 2019 could be a very good year for investors.
Diversification Benefits of Gold, Oil and the US Treasuries to the S&P500 Index during the Economic Business Cycle
Gold, Oil, and the US Treasuries provide different diversification benefits when combined with the S&P500 Index. Correlation of Gold prices to the stock market remains low in Bull and Bear markets. Gold provides consistent diversification benefit to the stock portfolio…. Read More ›
This is my sixth annual forecast of the S&P 500 Index return for the year. It is based on the simple linear regression model. The model uses Gross Domestic Product (GDP) as explanatory variable to the performance of the S&P… Read More ›
On one side, the Fed pushes short-term yields higher. On the other side, strong demand from investors pushes long-term yields lower. Investors may demand more long-term US government bonds in the coming years causing the yield curve to turn negative or to invert
The yield curve is likely to continue to flatten. The Fed has a strong control over the short term rates through its FOMC policies: setting the federal funds rate and by purchasing US treasuries. The long-term yields are out of the Fed’s control
Based on the statistical analysis and the forecast using GDP and S&P 500 data, I expect the S&P 500 Index to close at 2,375 on December 29, 2017. That is a potential annual upside of 6.1% from the closing price of 2,238 on December 30, 2016.
As a holiday tradition at ECNFIN.com, I forecast the S&P500 Index closing price one year from now. Based on the statistical analysis and forecast described in detail further in this article, I expect the S&P 500 Index to close between… Read More ›
Based on the analysis and forecast described in detail further in this article, I expect the S&P 500 Index to close between 1,905 and 1,935 on December 31st, 2015. This forecast is based on the expected Gross Domestic Product (GDP) of the United States which is calculated to be between $18,187 and $18,363 billion for the year 2015.
Passively managed funds can have a similar effect on the economy as systemically important financial institutions
It is the Holiday Season and we would like to make a new tradition here at ECNFIN by reviewing the current year stock market performance and looking into the future. We wish you happy and safe holidays full of wonderful… Read More ›
Today, plan sponsors and fiduciaries of retirement plans have knowledge of all the fees being charged to their 401(k) or 403(b) plans by various services provides. The new disclosure requirement under ERISA Section 408(b)(2) requires all service providers to disclose… Read More ›
The U.S. economic growth measured by the Gross Domestic Product (GDP) has significant influence on the U.S. stock market performance and specifically the S&P 500 Index. According to the Efficient Market Hypothesis developed by Professor Eugene Fama, the stock market… Read More ›
Introduction A simple 50/50 Asset Allocation Model is based on a passive two-asset class portfolio. It was built to reduce volatility of returns, decrease risk, and provide relatively stable performance in comparison to the S&P 500 Index alone. This model… Read More ›
Do you know that cash savings is a good risk management tool that can improve the return of your investment portfolio? Having available cash to cover your living expenses during unforeseeable future life circumstances will help you avoid taking additional… Read More ›