Cooper Wealth Management

Relativity and Investing

December 3, 2024 - Maddy Bodden

Leonard Susskind, the noted theoretical physicist, famously quoted that Einstein proved that different observers, in different states of motion, see different realities. The markets are constantly in motion. Whether it is earnings, news, rumors, or just normal daily activity, every stock is reacting both to its own forces and in relation to the overall direction of the market. How any of those data points are perceived by the market is dependent on the intentions of the observer.

The Alignment of the Stars

October 21, 2024 - Maddy Bodden

In the children’s fantasy novel, Peter Pan, these are the directions to Neverland, home of Peter Pan and the Lost Boys. With investing, it is often difficult to know which star to follow as the investment horizon is ever changing, and never totally clear. In recent months, market focus has shifted among inflation, interest rates, corporate earnings, and even politics. All these items can have a profound effect on markets that must be carefully navigated. This month, we will review these points to determine the best investment path forward.

The Little Things

August 23, 2024 - Maddy Bodden

Details. Details. In the investment world, as long as the market is moving higher, data points that are deemed irrelevant are ignored until they become relevant. On August 5, we saw a large sell off in US equities after a 12% decline in Japan’s Nikkei stock index, all triggered by a rise in the yen after the Bank of Japan increased their interest rate from 0.1% to 0.25%. How does such a little thing as a 0.15% Japanese rate increase send the US market into a tailspin?

So it begins

July 5, 2024 - Maddy Bodden

In the movie trilogy, the Lord of the Rings, the forces of good and evil battle over the fate of Middle Earth. In the investing world, the fight has been between inflation and interest rates with higher interest rates slowing the economy and bringing down the overall inflation rate. With inflation now heading towards the US Federal Reserve’s target of 2% and international inflation rates moving lower even faster, we have seen the first interest rate cuts from Canada and European Central Bank of 25 basis points. The question that presents itself is: are we finally at the beginning of an interest rate trend towards a normalized economy or will inflation again rear its ugly head as interest rate pressures are eased on consumers? This month, we will explore that question and the implications f

Inflation vs. Productivity

May 13, 2024 - Maddy Bodden

Over the last six months, the global stock markets have moved higher as inflation fell and the prospect of declining interest rates grew closer. Now that US inflation has increased slightly at the end of March to 3.5%, we have seen the market have impatient sell offs in April as the number of projected rate cuts has dropped. What is seemingly being ignored at the moment is the ongoing strength of the US economy and the productivity gains being made. This month, we will examine Secretary Yellen’s comments and consider their implications for both the US economy and the stock market.

The Little Engine That Does

March 1, 2024 - Maddy Bodden

In the children’s story “The Little Engine that could”, a small train climbs a large hill because it believes in itself. Based on population, the US represents only 4.23% of the world, yet it has become the economic engine that pulls the world’s markets behind it.

On the Road in 2024

January 17, 2024 - Maddy Bodden

With his 1957 novel “On the Road”, Jack Kerouac helped launch the Beat Generation. His stream of consciousness style and focus on independent thought and action made him an icon of his generation. In the investment world, popular opinion definitely drives the market, but it is independent thought and willingness to consider all factors that lead to better decision making and results. This month, we will consider the recent dramatic swing in market direction with an objective eye to determine what warning signs are on our investment road to investment success in 2024.

Powell and the Three Bears

November 24, 2023 - Maddy Bodden

In the real economy, US Federal Reserve Chairman Powell first faced inflation that was too cold for many years, then too hot through Covid and now seems to be coming in at a more normal level. Powell used a historic rise in interest rates as well as reducing the money supply through sales of the government’s Treasury bond holdings. The market has been waiting to see if the Fed can get inflation down while engineering a Goldilocks soft landing for the US economy that avoids a recession. This month, we will look at the three bears: inflation, interest rates and the US economy, to see how close Chairman Powell is to getting things just right.

Value Investing and the Markets

October 11, 2023 - Maddy Bodden

When the markets get as choppy as they have this year, investors turn to value investments to be defensive but in a rising interest rate environment, even these investments have shown weakness. By definition, value stocks tend to pay higher dividends and are in stable industries that can weather a recession. However, there is a deeper meaning to value stocks than just the ordinary definition and this month, we will explore the intrinsic value of stocks in the particular context of today’s market.