January Markets for Stock & Bond Prices

Victor Levinson Comments

January Markets for Stock Prices  January 2021 month-end stock market figures showed little change, even though there was considerable volatility within the month. The big new news for the financial media was the action in a few small stocks that made huge gains, most likely because they were part of a so-called “short squeeze” by relatively new traders in the …

Stock Prices & Looking Ahead to 2021

Victor Levinson Comments

During November and December, stock prices in the US and internationally made significant gains, which took the three primary US indexes to new all-time highs. Since the March 23, 2000 lows of 2,237 for the S&P 500, 18,591 for the Dow Industrials, and 6,860 for the NASDAQ Composite, the three indexes closed December at 3,756; 30,606; and 12,888, respectively. The …

Consolidated Appropriations Act

Victor Levinson Comments

Consolidated Appropriations Act In our March 2020 Comments, we discussed the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed on March 27, 2020 in response to the pandemic. We also addressed the parts of the Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in late 2019, that made changes to IRA rules. We now review …

November 2020 Stock Prices

Victor Levinson Comments

During November, stock prices in the US and internationally made significant gains, which took the three primary US indexes to new all-time highs. Since the March 23, 2000 lows of 2,237 for the S&P 500, 18,591 for the Dow Industrials, and 6,860 for the NASDAQ Composite, the three indexes closed November at 3,622; 29,639; and 12,199, respectively. The percentage gains …

The Psychology of Money

Nick Levinson Comments

“Behavioral finance” is a relatively new but increasingly influential part of the financial world. Where traditional economic/finance theory assumes that consumers and investors regularly maximize their opportunities, behavioral finance acknowledges that this is not always the case. If you’re interested, excellent books on the subject include Thinking, Fast and Slow by Daniel Kahneman; Misbehaving by Richard Thaler; Nudge by Thaler …

Bond Prices

Victor Levinson Comments

As stock price volatility continues, both up and down (more down for September and October, after a major gain from the 2020 lows in March through August), investors tend to pay more attention to bonds as an alternative to stocks for their liquid investment portfolios. (Although our Comments are written as of the end of each month, we take note …

Stock Prices

Victor Levinson Comments

In our August Comments, we presented several investment definitions and principles that we consider useful in further understanding price changes in the financial markets. Interestingly, the price earnings (P/E) ratios we discussed in August have become a talking point in September’s media coverage of the volatility. Briefly put, some number of market analysts and financial media believe that stock prices …

Early Comments on the Upcoming Election

Victor Levinson Comments

With all that is going on in the world, there is an additional wildcard, namely the upcoming US presidential election. As our regular readers know, we at PPA maintain that who is President is only one of several factors affecting stock and bond prices. Even if we know who is going to be President, no one can predict what will …

Important Investment Definitions and Principles

Victor Levinson Comments

The month-end August 2020 US stock and bond market investment results continued to be mostly favorable, even though the declines during the first week in September (3rd, 4th, and 8th) reduced these positive results somewhat. We think this is an opportune time to present certain basic investment definitions and principles that we at Park Piedmont (PPA) consider important to know. …