10 Mar

Volatility Returns

March 7, 2020Printer-Friendly VersionVolatility has returned to global financial markets. As seen in figure 1 below, the Volatility Index (“VIX”) has spiked to the highest level since 2015. However, looking further back, the VIX is nowhere near the Great Recession of 2008-2009. History proves that volatility in financial markets is nothing new. However, since early 2009, the US markets have enjoyed a low period of volatility.Coming into 2020, the US Stock market was naturally elevated after a decade long decline in the VIX (figure 2). Price to Earnings (P/E) ratios were also elevated (figure 3). As seen in this chart, in the past high levels of P…

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12 Jan

5 AM Alarm

January 12, 2019Printer-Friendly VersionAs I have aged, it seems my alarm clock goes off earlier and earlier. As a child, I somewhat dreaded waking up early in the morning unless it involved golf or some other sporting activity. Early morning Bible studies were thrown in the mix as I entered college. I have many older mentors to thank for motivating me to get up early and study the Bible. As I started my career, an earlier wake-up was the norm. Of course, once kids came along, the alarm clock was somewhat useless as babies became the new alarm clock (which went…

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14 Oct

Expectations

October 14, 2016Printer-Friendly VersionEvery four years we elect a new President. Every four years the most gifted athletes in the world compete in the Olympic Games. I don’t know about you, but this election cycle is driving me crazy! So why don’t we talk about the Olympics instead. Meet Clayton Murphy. Just 21 years old, Murphy earned a bronze medal in the 800 meters this past summer in Rio. It was the first time an American has medaled in the 800 meters since 1992. He finished in a time of 1:42.93, which was the third-fastest American time ever and faster than his previous personal reco…

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24 Jun

Britain Votes to Leave the European Union

June 24, 2016Printer-Friendly VersionMany of us awoke this morning to the news of the British decision to leave the European Union. After a marriage of more than four decades, 72% of voters turned out to “leave” the EU by a slim margin of 52% to 48%. No doubt, the people have spoken. The vote also propelled the British Prime Minister David Cameron to resign.The 52% that voted to leave the European Union felt that remaining in the European Union meant less sovereignty, less control over immigration, increased crime and possibly even a higher risk of terrorism. Did they really know exactly what they were voti…

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4 May

Perseverance in Down Markets

May 4, 2015Printer-Friendly VersionThe first Sunday in April is always one of my favorite days of the year as it typically marks the final round of The Masters Golf Tournament. This year, defending champion Jordan Spieth entered the final 9 holes of the golf tournament with a 5 shot lead. He had been flawless through 63 holes and it was almost a foregone conclusion that he would march through the final 9 holes and be the first back-to-back champion since Tiger Woods in 2001-2002. He bogeyed 10 and 11. Then he stepped to the tee of the famous 12th hole, a 155-yard par three, the middle hole…

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