Investors concerned about recent market swings wonder if there’s any relief in sight. The short answer: not any time soon. The Chief Investment Officer at Schwab, Liz Ann Sonders forecasts the near future for this secular bull market. The best course is to stay patient and maintain liquidity, as Bill Ehrman writes for Financial Advisor. In the meantime, if you think the costs of things you buy on a day-to-day basis are rising, you may be right. You can find out by checking the EPI, or Everyday Price Index. The American Institute for Economic Research explains how it works.
Running To Stand Still: Wild Swings Taking Market Nowhere– Stocks have gone 28 trading days without showing back-to-back gains. Historically this is a unique experience. Liz Ann Sonders, Chief Investment Strategist at Schwab, reviews the current market. She reaffirms their view that although the secular bull market that began in 2009 is not over; it’s likely to be a much choppier ride for investors…possibly until earnings can catch back up to valuations. Read more…
Stay The Course– Investment manager Bill Ehrman says his head swirls listening to the pundits every day. When the markets rise, we hear why it will continue up and when it falls, like last week, the same “wise” men tell you why that trend will continue. These experts very rarely step back, review all the facts, reflect and invest accordingly. Ehrman reviews the facts in this article. He advises investors to stay patient, maintain liquidity and let events unfold. The global economies are in much better shape now than at any time over the last five years, but risks will always exist. Read more…
What Is The Everyday Price Index (EPI)?– The EPI, published by the American Institute for Economic Research, aims to reflect the price uncertainty (i.e., unexpected and unavoidable price changes) people face in connection with purchases they cannot easily adjust from one month to the next. The EPI tracks a subset of prices out of the broader Consumer Price Index (CPI), reported by the Bureau of Labor Statistics (BLS). The CPI includes prices of all goods and services purchased by a typical urban consumer. The EPI, in contrast, includes only the goods and services purchased on a day-to-day basis. The EPI includes prices of such everyday items as food, utilities, fuel, prescription drugs, telephone services, etc. The EPI index has risen at a faster rate than the CPI over the past ten years. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller