Two Markets on Similar Paths— Except for Volatility

The market recoveries from the Tech Crash and the Financial Crash were remarkably similar.   As I blogged in February 2012, the S&P 500 index closed out the 2009 to 2012 period within 4 percent of the index 6 years before.     The 2012 year market, just like 2011, started out fast but the spring correction brought it back to the old path.   In …

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Why 18.5 is the right PE ratio for the S&P 500

Originally posted May 28, 2012 Consistent long term growth rates are one of the tenets of buy and hold investing.  In the case of the S&P 500 this annual growth rate has averaged 5.9% since 1950 (dividends excluded, compounded monthly).  All you need to do is invest early, be patient, and wait for the inevitable payoff. The last 12 years have not been kind to …

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2023 Ex-dividend and Pay Dates: VO, VOT, VB, VBR, VBK, VOE, VXF

Apparently, Vanguard likes to keep their ETF ex-dividend and distribution dates a secret until just a couple days before the event.  It has that old mutual fund feel to it—”we’ll give you a quote after-market and allow you to buy or sell our stuff at the end of the day, otherwise go away…” As a result, the dates below are just guesses, based on previous year’s …

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Protecting Junk Bond Principal With a Volatility Hedge

At the moment investment grade bonds with their low yields and risky exposure to interest rates are unattractive places to put your money.   Broad equity indexes like the S&P 500 have higher potential gains and dividend yields in the 2% range, but the dramatic drawdowns of 2008/2009 are still fresh in our minds.   Commodities like gold and oil look expensive—so where is a …

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Trading the CBOE’s SPX AM and PM settled Options

If you need options on the S&P 500 the CBOE’s SPX series is one of the most popular solutions in the marketplace.  The CBOE continues to enhance this product with additional expirations—the latest being the addition of options expiring on Tuesday and Thursday afternoons in the spring of 2022.  These products were immediately successful.  With all the days of the week covered it will interesting …

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