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Strange Market Behavior Surrounds Fed’s Second Rate Cut

The Federal Reserve cut the Federal Funds rate yesterday by a quarter-point to a range of 1.75%-2.00%. This was the second rate cut in just seven weeks and was a bit controversial, even within the voting members of the
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Are Value Stocks Staging a Comeback?

As we have noted in previous articles and posts, growth stocks (on the whole) have have been outperforming value stocks for more than a decade. (Definitions of "growth" and "value" are imprecise but, generally speaking,
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Interest Rates and Negative Bond Yields

President Trump got the financial world (OK, the non-financial world too!) fired up with the following early-morning tweets today:
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Is Indexing the New Subprime Crisis?

The rise of passive investing, or "indexing," has been going on since the first index funds were introduced back in the 1970s. But the bull market that began a decade ago in 2009 has really kicked the indexing trend into
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Mastering the Market Cycle

While market cycles may not repeat precisely, they have recurring and recognizable characteristics. Knowing those characteristics could keep you from making a big mistake.
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Fed Begins New Rate-Cutting Cycle

When the Fed starts cutting interest rates to forestall a future recession, that's usually good news for investors in the short term. In the longer term, not so much.
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Q&A – Answering Your Questions Now

For many years, SMI used to run a "Q&A" column in the newsletter every month where we would answer reader questions. We haven't done that in recent years, as the ability to interact in the comments on every article online
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SMI on the Radio: Interest-Rate Reversal (audio and transcript)

The Federal Reserve recently reversed course and cut interest rates. SMI executive editor Mark Biller explained why that's significant and what it may mean for investors yesterday on Moody Radio's MoneyWise
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Yield Curve Inverts – What You Need to Know

We've been witnessing tremendous daily volatility in the stock market recently and today is no exception. That said, the primary catalyst for today's plunge lower — the "official" inverting of the yield curve — is a big
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Trump/Powell Ping-Pong Match Takes Its Toll

Well, that was quick. Just six trading sessions ago (the Friday before last), the S&P 500 set its most recent all-time high. As we've pointed out several times, other parts of the stock market haven't been as strong —
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