Posts Tagged ‘market news’
Why Weakness in Commercial Real Estate May Signal Trouble
REIT investors are having a terrible year. The guiding principle of relative strength investing is to invest in what’s strong and avoid what is weak. The underlying principle of this approach is that assets that have been performing well in the recent past are likely to continue to do so in the future, while those…
Read MoreThe Fed Announcement’s Implications for Banks
It’s about to get interesting… I think we’re about to see some bodies. Yesterday, the Federal Reserve announced another 25bps increase in interest rates. The Fed and Jay Powell made it clear that there is no trade-off between taming inflation and financial stability. Echoing the thoughts of his European counterparts, Jerome Powell said it’s the…
Read MoreRelative Strength Update: Failing Bank Implications
After a tumultuous 2022, 2023 was off to a great start. Then banks threw a monkey wrench into the machine. Now the S&P has almost erased its impressive YTD gains, several banks are failing, and the prospect of a worldwide banking crisis looms… In times like these, it’s easy to become emotional and get caught…
Read MoreEverything You Need to Know About the FDIC
Unfortunately, the sudden collapse of several large Regional banks over the last week has that boring old Federal Deposit Insurance Corporation (FDIC) insurance back as a topic of conversation. So, we thought it might be helpful to highlight what the FDIC covers and how much… and maybe most importantly, what it does not cover. The…
Read MoreA Helpful Q&A on the Bank Crisis
And here’s the price paid… Last weekend’s fallout from the Silicon Valley Bank’s (SVB) failure has dominated market news. So I want to address some of the questions and concerns surrounding what’s happening in the banking sector. Let’s dig in… Last Friday, Silicon Valley Bank (the 16th largest bank in the U.S.) failed and was…
Read MoreSVB Collapse Sparks Concerns About Systemic Risks in Financial System
Two bank failures and a falling stock market. What is going on? The events of the past week have caught many investors off guard, but for our regular readers and clients, you know that we have been warning about the growing risks in the markets for some time. On March 1, I discussed how there…
Read MoreDon’t Lose Sight of the Bigger Picture
Thursday’s headlines were focused squarely on the collapse of Silicon Valley Bank and Silvergate Capital. Last week’s news will inevitably get replaced by the next big thing. That big thing? Doesn’t really matter… You’ll hear about it. You’ll hear what the numbers mean. And you’ll certainly get a healthy dose of predictions. Every day it’s…
Read MoreIs This the Death of Dividend Investing?
Dividends have historically been an important component of the overall stock market return. In fact, many investors view dividends as a crucial part of their investment strategy, particularly those who seek regular income from their investments. Over the long term, dividends have contributed a significant portion of the total return for many stocks. According to…
Read MoreThe Next Debt Crisis
Today we’re going to take a macro look at both savings and debt and what they may be signaling for investors… Because too many American workers have seen their standard of living decline due to inflation. Over the last three years, many Americans witnessed a collapse in their standard of living as inflation outpaced income…
Read MoreRelative Strength Update: Risks May Be Growing
There’s an old saying that the only certainty is uncertainty when it comes to the financial markets, and it couldn’t be more true. For Avalon, the North Star that guides us through the markets has been and always will be Relative Strength. For over 20 years, we’ve researched and tested the Relative Strength strategy we…
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