In the decade since the severe credit crisis of 2008, the Federal Reserve Bank has pumped over three trillion dollars of liquidity into the markets by purchasing Treasuries, mortgage bonds and other assets. The Fed has also kept interest rates relatively low, despite its recent short-term rate hikes and its initial efforts to gradually shrink … Continued
Following very strong third quarter stock market returns, volatility in October has picked up significantly, culminating this week with a correction that caused the S&P 500 to move into negative territory for the year. Given the severity of the sell-off, (down 10% since late September) as well as the significant daily volatility, we thought you … Continued
The world of investing is ever changing and teaches new lessons to even the most astute investors. For many in the industry, this is the hallmark of what keeps our work interesting and rewarding, even though the process can be incredibly humbling and frustrating at times. The last ten years underscore this inherent challenge, and … Continued
Is the yield curve telling us we are headed for a recession? Since the 1950’s, all U.S. recessions have been preceded by an inverted Treasury yield curve, which occurs when short-term interest rates exceed long-term interest rates. Given this historical correlation and the shape of the yield curve today, it is worth exploring this complicated … Continued
We are proud to announce Sand Hill’s Chief Investment Officer Brenda Vingiello, CFA, is now a regular contributor on CNBC’s Halftime Report program. Watch Brenda’s most recent appearance as she discusses the interest rate and corporate earnings landscape. Her commentary begins at the 2:30 mark. The content was produced and provided by an unaffiliated third … Continued
Just six months ago, Bitcoin and cryptocurrencies in general were all the rage with an overall market value peaking at about $800 billion. A 450% increase in value over just three months drew attention and investment from both industry insiders as well as many unsophisticated investors. Predictions were rampant about how cryptocurrencies, tokens, and the … Continued
The familiar admonition, “Be careful what you wish for, lest it come true,” is age-old and universal, having been told in many forms throughout history from Greek mythology, to Chinese proverbs, to great works of English literature. Despite this inherent knowledge in our collective memories, it is simply human nature to ignore such advice and … Continued
Throughout history, global economies have undergone several distinct transitions in the form of industrial revolutions marking massive transitions to new manufacturing processes. These revolutions have caused major tipping points in history altering many aspects of life, often enriching those who enabled the change. Not surprisingly, some of the most compelling investment opportunities have emerged during … Continued
The use of fire by primitive humans for warmth, cooking and protection 300,000 years ago enabled our species to ascend from the middle of the food chain to its top rung. Eventually, using wood as the primary source of energy gave way to coal in the 1800’s, and with it came the electrification of homes, … Continued
When the year began, it seemed like the economic landscape was great and only getting better. Congress had just passed a sweeping tax reform package, leading economic indicators suggested acceleration in economic growth, corporate earnings growth was being revised higher, and even tensions in North Korea appeared to be softening. The stock market reacted favorably … Continued