After nearly two years of interest rate hikes aimed at cooling inflation, the Federal Reserve has officially changed course. In September, the Fed cut its benchmark rate by a quarter point to a range of 4.00%–4.25%, citing softening labor markets and growing risks to the broader economy. Core inflation is now running near 3%—well below its 2022 peak—and markets are…
The stock market’s recent strength has been attributed to many things. First among them is the emergence of artificial intelligence (AI) as an economic force. I would argue that there is another economic force that has been unleashed on the world that may turn out to have even more economic value than AI. It goes by the name glucagon-like peptide-1,…
Buy Now, Pay Later (BNPL) programs have quickly gone from fintech novelty to mainstream payment method, reshaping how consumers shop and borrow. What began as an alternative to credit cards is now embedded across nearly every major retail platform—from Amazon (NSDQ: AMZN) and Walmart (NYSE: WMT) to countless online boutiques—promising flexibility, simplicity, and instant gratification. But as the sector grows, so does the debate:…
Common. By definition, it sounds plain. Ordinary. On the other hand, preferred has a much nicer connotation. It’s a descriptor indicative of an added perk or upgrade. The same is true in the financial world. Common and preferred stocks both convey equity ownership in a business. But while the former grants voting rights, the latter carries something even better: preferential dividend treatment.…
Last week, I explained why I believe uranium will outperform gold over the remainder of this decade. As I noted then, “there is an energy crisis brewing due to rapidly increasing demand for data centers to support artificial intelligence (AI).” Without a doubt, demand for uranium will increase as this country expands its nuclear power capabilities. But there is another…
It’s easy to think of the major U.S. stock market indexes as permanent and unchanging over the decades. The financial equivalent of Mount Rushmore. But unlike that famous monument chiseled into the South Dakota hills, the corporate icons enshrined in the Dow Jones aren’t exactly set in stone. In fact, there have been 59 changes made over the years by…
Now that the Labor Day weekend is behind us, it’s time to focus on the one thing that unites most Americans: football season! Just as the favorites don’t always win at football, the stock market isn’t always the best place to invest your money. That doesn’t often happen, but one of those times may be coming this fall depending on…
Markets got a jolt last week after Federal Reserve Chair Jerome Powell signaled that a rate cut may be coming soon. Speaking at Jackson Hole, Powell noted that “downside risks to employment are rising,” and hinted that monetary policy will need to adjust. Traders took him at his word—the Dow soared over 800 points on the day, and futures markets…
Most of the headlines about artificial intelligence (AI) focus on the winners—companies building the tools, designing the chips, or leveraging automation to cut costs. But every revolution has two sides, and as investors we need to recognize that while AI will create massive opportunities, it will also disrupt—and in some cases devastate—certain business models. Bank of America (NYSE: BAC) and other…
Market jitters returned last week as the S&P 500 fell 2.5%—bringing it to just 1.5% above where it stood back in February. When markets take a dive, the reflexive advice often comes quickly: “Buy the dip!” But should you follow it? Sometimes, buying the dip can be a smart way to pick up quality assets at a discount. Other times,…