Boltwood Capital Management | Weekly Reads: 12/24/2018
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Weekly Reads: 12/24/2018

The Week’s Best Articles: Week of December 24th, 2018

Health Care: Despite Hemp Legalization, CBD Products Still Largely Illegal – click here
CBD products have become very popular as the stigma around marijuana and hemp have declined.  However, in this article, the author examines the reality that the U.S. government still considers many of these products illegal.

Markets: The Herdlike Behavior of Computerized Trading  – click here
“Algo” traders and hedge funds make up most of the market volume on stock exchanges today.  This article by the WSJ looks at the impact that these strategies have on tamping down volatility during periods of calm while amplifying it during periods of stress.

Retail: Retail Companies Having Best Holiday Season In Six Years  – click here
Many people forget that the U.S. consumer represents the largest source of GDP in America.  As a result, the health of the consumer is vital to the overall of our economy.  CNBC outlines how despite fears around the economic cycle the consumer remains confident and that is benefitting retail companies.

Investing: A History of Bear Market Bottoms  – click here
With the recent bounce in the market from the lows that were set on Christmas Eve it is fair to wonder whether we have set a bottom or if this was a bear market bounce.  This article examines the history of bear market bottoms and what history tells us about where the market may go from here.

Investing: Why The Trump Bear Market Is Good For The Market  – click here
For many investors, BCM included, one of the major risks in the market was that the Federal Reserve would make a policy misstep that would send the market (and economy) into a tailspin.  While the decline is not fun to deal with it does potentially help remove this risk by reducing the need for the Federal Reserve to move too quickly.

Fixed Income: As Credit Losses Pile Up, One Bond Guru Dismisses Crisis Talk  – click here
There is no doubt that a great deal of debt has been issued by American companies since the bottom of the financial crisis.  While this has the potential to be destabilizing if rates rise this bond investors does not see cracks in the market just yet.