Tag Archive: bonds

The Stock Market Fallacy

After seeing a decent sell-off following the June 23rd Brexit referendum, stocks have not only fully recovered, but the broad market S&P 500 is probing deeper into new all-time high territory. After the S&P fell over 120 handles in the wake of Brexit, the market took just days to recover. Since that recovery, the market has remained on the offensive, with seemingly unstoppable forces behind it propelling it to fresh all-time highs. This begs the question: What powers could be behind the sharp rise in... Continue Reading

The Counterparty Risk Problem

Investopedia defines counterparty risk as “the risk to each party of a contract that the counterparty will not live up to its contractual obligations.” Now think about that for a moment… Whether you realize it or not, you have to confront counterparty risk on a daily basis. Will the power company deliver electricity to your home? Will the city or municipality provide a clean and reliable water supply? Will your health insurer pay up in the event of a claim? While all of these issues... Continue Reading

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