FIRESIDE CHARTS

Directionally Correct but Precisely Wrong: How Behavioral Biases Often Lead to Suboptimal Outcomes
Behavioral finance plays a big role in the way that we think about investing. The idea that investors have consistent biases, many of which lead to suboptimal investment outcomes, is commonly accepted by…

Material Rate Increases Across the Yield Curve, Threat to Housing Market and Energy Prices
As the Federal Reserve plans to raise short-term interest rates, the market is already a few steps ahead. Inflation expectations are moving higher and interest rates across the yield curve have already…

China Attempts to Calm Markets, Small- and Mid-cap Equities’ Relative Attractiveness, Update on the Fed’s Latest Rate Projections
The Chinese government is attempting to calm markets after steep price declines. Employees may be returning to the office, but companies aren’t leasing new office space just yet. Performance of small- and…

Higher Mortgage Rates Reducing “Stimulus”, Effects of Rising Gas Prices on Consumers, War’s Impact on the Wheat Market
Rising house prices and falling or low interest rates act as a form of “stimulus” to homeowners as they refinance their mortgages. So far, higher debt levels haven’t caused any financial stress for households…

Direct Impacts of Higher Oil Prices
Following the Russian Federation’s invasion of Ukraine, Brent Crude Oil futures climbed over $100 a barrel for the first time since 2014. On March 4th, the benchmark price rose by $7.96 to $112.93—the…

Stocks Taking a Hit, Omicron Impacting Inflation, and Will Tensions Overseas Effect Markets?
January 2022 has certainly started with a bang. While volatility is normal in markets, we want to explore some of the “whys”. Global PMIs retreat as Omicron does its thing. How many Americans are out…

BCM 4Q21 Market Commentary: The Speculative Fever is Breaking
We’d like to start by wishing our readers a happy and healthy New Year. When we wrote our last quarterly letter the U.S. was in the midst of a wave in Covid-19 cases driven by the Delta variant. At the time…

Effects of Rising Rates on Stocks, Manufacturing Takes a Hit, and Pre- vs. Post-Pandemic Test Scores
What effect will a 1% rise in rates have on your portfolio? A look at rate increases and their effects on equity markets. We hope you refinanced your mortgage as mortgage rates follow suit. Is the sell-off…

Inflation Admittedly Not Transitory, Energy Volatility and Effects of Rising Yields
Is the Fed behind the curve? It wouldn’t be the first time! Recently they started admitting that many of the inflationary inputs are not transitory. We show you some reasons why. If inflation is here for…

Money Supply Spikes, Inflation Puts Pressure on Wages and Profits, and Global Bond Yields Keep Rising
The press talks about inflation, we’ve included some data to ponder and share. Will the negative bond yields in Europe and elsewhere quickly turn into a relic? An update on the U.S. bond yield curve after…