Category Archives: Asset allocation

The Long Awaited Return of M&A Activity

In a positive economic development, Mergers & Acquisitions ("M&A"), as many analysts have predicted, have already started to heat-up in early 2010. In fact, BersteinReseach has forecasted at 35% increase in M&A activity in 2010. Some of the more noteworthy M&A deals that have been announced thus far in 2010 have included:Read more

Current Bull Market marks 1 Year Anniversary

The current bull market will mark its official 1 year anniversary this week - March 9th to be specific. History suggests that this is a critical milestone and one in which investors should pay attention to. According to Bespoke Investment Group, of the 26 bull markets - with bull markets defined as at least a 20% rally that was preceded by at least a 20% decline in the S&P 500 - that have taken place in the history of the S&P 500, 13 of them (i.e. 50%) have lasted for more than one year. The average length and gain of bull markets that pass the one year anniversary mark is 4.4 years and 152.81% respectively. Furthermore, only two of the previously highlighted 13 one year + bull markets lasted fewer than 2 years.Read more

What to make of the Fed’s Recent Interest Rate Hike

What to make of the Fed's Recent Interest Rate Hike The Federal Reserve surprised virtually everyone after the markets closed yesterday by announcing their intentions to raise the Discount Rate by 0.25% (i.e. 25 Basis Points) from 0.50% to 0.75%. This marks the first time that the Federal Reserve has raised the Discount Rate since June of 2006.Read more

Beware of the P.I.I.G.S.

If you have been wondering what specifically has been one of the main culprits in the stock market devaluation in recent days, look no further than to a group of countries in Europe affectionately known as the P.I.I.G.S. The countries, which many believe are the weaker components of the Euro-zone, include Portugal, Ireland, Italy, Greece and Spain.Read more

Are Interest Rates Heading Higher in 2010?

Using the Effective Federal Funds Rate as a proxy for interest rates, it is reasonable to conclude that interest rates are at historic lows and likely to only go higher.Read more