Dollars & Sense Blog

A Convergent Wealth Advisors Blog

May 2, 2016
“Sell in May and go away”—it’s simple, it rhymes, and you will almost certainly hear someone say it this month. In case you are unfamiliar, the longstanding adage advises investors to sell stocks in May and get back into the market in November, thereby avoiding a frequently observed period of... read more
April 6, 2016
Moderation in All Things, Including Inflation Inflation, like so many things in life, is best taken in moderation—excess usually leads to regret and suffering. While individuals may wisely apply restraint to many of their own potentially hazardous habits (such as eating, spending, gambling, or... read more
March 3, 2016
Is the High Yield Sell-off a Canary in a Coal Mine? According to coal mining lore, early miners used caged birds (canaries) as an early air quality warning system. Canaries are particularly sensitive to dangerous gasses such as methane and carbon dioxide, therefore the death of a bird signaled an... read more
January 28, 2016
A Chicken-and-Egg Situation Oddly enough, some of life’s most perplexing riddles involve chickens. While that is a mystery in and of itself, the paradox of which came first—the chicken or the egg—is often used to reference difficult-to-solve puzzles of causality involving independent matters which... read more
December 10, 2015
It might be unfair to compare Federal Reserve Chair Janet Yellen to the grinch, but unlike her European Central Bank counterpart, Mario Draghi, Ms. Yellen is not likely to give investors any presents for the holidays this year. This is especially true given the recent upbeat jobs report appears to... read more
November 12, 2015
Manufacturing is so out of style. Once the engine that drove our nation’s economy, the business of making things has taken a back seat to the service sector over the past few decades. The divergence has become even more pronounced during the recent phase of this expansion, with the manufacturing... read more
October 14, 2015
Are Investment Monsters Lurking Around the Corner? Thus far, 2015 has been a rather dreary year for stocks. Unless there is a fourth quarter comeback, it is shaping up to be the worst year since 2008. And as Halloween approaches, there are concerns that it might only get more daunting. Volatile... read more
September 15, 2015
Investors have gotten a reminder of what volatility looks like, as U.S. stock markets have recently fallen into correction territory. Trepidation has surrounded two somewhat contrasting worries: (1) China’s stalling economy may induce a global slowdown; and (2) the Federal Reserve’s apparent... read more
August 27, 2015
Passive Tools – Make Sure to Look Under the Hood   A brief note on passive, or index-oriented strategies. The past decade has experienced a dramatic explosion of index-oriented investment tools in the form of mutual funds and ETFs. The indices these tools are designed to replicate can be very... read more
August 24, 2015
What's unnerving investors these days? Perhaps the fact that developed market equities are joining in a sell-off that had (to-date) been largely limited to Natural Resource Equities, Commodities, and Emerging Markets Equities. Until recently, investors have treated this slowdown as one that was... read more
August 11, 2015
The End of the Bond Bull Market? The Federal Reserve is expected to begin raising short-term interest rates later this year, perhaps as soon as September. Citing an improving U.S. labor market, this pending shift in monetary policy, along with a steadily improving economy, should place upward... read more
July 14, 2015
The Chinese stock market has been on a wild ride in recent weeks, unsettling investors and sending ripples throughout global financial markets. Combined with the ongoing Greek saga, some might get the sense that global markets are in peril. As the world’s second largest economy, any Chinese market... read more