Maybe we need to change the way we think. We have so many things to worry about right now. Will the economy bounce back sharply or will Covid win again? How long will the Fed’s stimulus last? And which sectors will lead the market? The tried-and-true giant media and e-commerce companies (Facebook, Amazon, Netflix, Google, […]
News & Insights
The People Behind the Production…
Once in a while, we like to pull back the curtain and show you all that goes on behind the scenes at Hanson & Doremus. There is no wizard or wizardry behind the production, just a lot of old-fashioned work done by people that we think form quite a unique team. This is our 26th […]
“It’s not what we don’t know that gets us in trouble. It’s what we know for sure that just ain’t so.” Mark Twain
Annual stock market forecasts have a pretty poor track record. For proof, consider last year. At the end of 2019, the median consensus on Wall Street was that the S&P 500 would rise 2.7% in 2020. In April, after the market’s pandemic related plunge, a Bloomberg survey showed forecasters predicting that the S&P 500 would […]
Our Holiday Gift for 2020…
I t has been a tough and trying year. But we all persevered. Here’s to our strength and to a less stressful year in 2021! In the meantime let’s give thanks to family and friends and for safety and health. And let’s leave a little room for one last treat in 2020, our dessert recipe. […]
How Can China Grow So Fast ..?
While investors earn so little? Look at the chart below Not much of a return from the Shanghai Stock Exchange the past 10 years despite the rapid growth of the economy. What is the reason investors did not get much of a return? The simple explanation is the quote below. Companies in China do not […]
R.I.P 60/40…
For decades investors have relied on a simple and practical investment approach, the “60/40 portfolio,” to achieve long-term investment goals. The simplicity is elegant and historical results, powerful. In its most simplified form, the 60/40 portfolio is 60% large-cap U.S. stocks and 40% U.S. government bonds. The American Association of Individual Investors, or AAII, has […]
A Look into a Post-Covid World…
The pandemic struck at the core of one of the most basic of all human activities – personal interactions. Fortunately, the technology industry has launched a range of solutions aimed at helping fill the void. In healthcare, telemedicine has allowed providers to continue offering care to thousands of patients. Delivery apps are helping grocery stores […]
It’s the Coronavirus, Stupid…
So how does 2021 look? We will shamelessly borrow here from James Carville’s advice to Bill Clinton before the 1992 election, “It’s the Economy, stupid.” Today it’s all about COVID-19. Right now, we appear to be in Round Two of the outbreak. Things are getting worse, as they are also in Europe. The good news, […]
Is Globalization About to be Unwound?…
Back in the 1980s and 1990s, economic pundits raved about how new global supply chains and new companies were reshaping the Global Economy. Remember the BRICs (Brazil, Russia, India and China)? And the Four Tigers (South Korea, Taiwan, Hong Kong and Singapore)? Everyone seemed to benefit from globalization. The West got cheaper goods, which increased […]
Why it’s Been so Hard…
The investing phenomenon of the year has been how much, how quickly and how eagerly investors have bid up almost all asset prices, even as we’ve remained in one of the worst economic and health crises in history. Stocks, junk bonds, gold, houses – there’s been tremendous appetite for all. Competition for the brightest ideas […]
It’s Not Just About Who Sits in the Oval Office…
The stock market has a knack for proving investors wrong and this year is no exception. How, many of our clients have asked, can the market continue to advance in the face of such extreme electoral turmoil? The thinking here is not entirely off-base. Presidents wield tremendous influence over the fiscal and regulatory policies that […]
Thin Reeds in the Fog…
Back in the 1970s a market commentator used the term ‘Thin Reeds’ to describe an event, not yet clearly visible, which could be a big surprise in the future. One surprise today could be the sustained decline in the dollar. The dollar has been weak this year (see chart below). Over the past six months […]
