One of our (Shannon and Casey) favorite indicators, VIX is the ticker symbol for the Chicago Board Options Exchange’s Volatility Index. Consistent with its name, the VIX is a measure of volatility, or how fast prices change. Sometimes called the fear gauge, the VIX “is a calculation designed to produce a measure of constant, 30-day […]
“If you don’t know who you are, this is an expensive place to find out.” – Adam Smith (pseudonym for George Goodman), The Money Game. Here at Gracestone, we know who we are. Three main principles guide our investment philosophy. First, we believe in building portfolios that both capture opportunity and weather downturns. Second, we […]
Who votes on setting rates? The Federal Open Market Committee (FOMC), comprised of the board of governors (seven), the president of the Federal Reserve Bank of New York, and four seats that rotate amongst the remaining Fed banks. There are currently five open spots on the board of governors and vacancies at two Fed banks. […]
Unforeseen consequences? Russia’s invasion of Ukraine has played havoc with the ruble. From 2017 to 2021, Russia’s currency traded between 56 and 80 rubles per dollar. Lows were reached in January 2017 and February 2018; the ruble saw its high in March 2020. Trading in 2022 started well within this range. In the days before […]
Just the facts. “US consumers imported $29.7 billion of goods from Russia in 2021. US consumers imported $506.4 billion of goods from China in 2021.” Sources: MFS Institutional Advisors, Inc., BTN Research
The federal funds rate is the target interest rate set by the Federal Reserve at which commercial banks borrow and lend their excess reserves to each other overnight. Used as a benchmark for short-term lending for financial institutions, it also acts as a peg to many consumer rates. Raising the fed funds rate makes it […]
“Since 1926, 84% of the rolling 3-year periods for the S&P 500 index (i.e., the 94 separate 3-years beginning 1926-28, then 1927-29, . . . 2019-21) have produced a positive return. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with […]
In a previous Business Brief, we told you that inflation was caused by “printing money.” Not paper money – the Federal Reserve creates brand new electronic dollars with a keystroke. Since 2020, the Fed has purchased $4T of bonds (previously issued U.S. Treasury securities and agency securities backed by bundles of home mortgages) from commercial […]
Metaverse real estate sales totaled over $501 million in 2021 and could double in 2022. Virtual real estate developers may want to consider building a North or South Pole for Facebook parent Meta (FB), which lost over $232 billion in value on February 3, 2022. That’s the biggest one-day plunge in value in the history […]
The transitory versus permanent debate is over. Inflation rose 6.8% in 2021, the largest increase since 1982. Three things to remember – 1. Inflation is too much money chasing too few goods. It is broad-based, as opposed to localized inflation caused by supply versus demand or product specific. You cannot have inflation without an increase in […]