Economic questions come in cycles. Recently, with the relatively hawkish tone of the Fed and the turmoil in Washington, DC, economic worries have spiked again, and the velocity of money has become a hot topic.

In yesterday’s post, I discussed how corporate earnings will likely continue to improve, which should be good for the stock market on a fundamental basis. That’s not the whole story, however.

The key driver of the stock market, over the long term, is earnings. In the short term as well, earnings can be the primary driver of market performance. So, each quarter, it makes sense to review whether earnings are doing well or poorly, and why.

I wrote this post a couple of years ago, but the ideas here still hold true. In some respects, they're even more apt now than they were then. As we approach the New Year, it's a good time to examine our portfolios (and our lives) and ask ourselves what we could be doing better. — Brad

It’s the most wonderful time of the year!

I suspect many of you are as tired of hearing that as I am. I love the holiday season, but the endless repetition of carols can get to you after a while. (In my case, I attribute it to high school jobs working in a department store. By the time I left for the day, I wanted to go after Frosty with an icicle.)

Over the past couple of years, I’ve written several posts that explained why U.S. market indices are not the best ways to measure your portfolio. Although it’s natural to look at the Dow, for example, and see how it matches up with your own portfolio, it really isn’t a good comparison.

I remember when the Dow Jones Industrial Average hit 10,000, both going up and going down. It was a lot more fun going up, especially the first time. The index is now approaching double that level—Dow 20,000. If we get there, it should be exciting.

My colleague and friend Peter Essele, portfolio manager here at Commonwealth, has again put together an interesting piece highlighting the gap that often exists between what investors expect and what the market gives them. Although it’s a bit technical, the point is very important given recent moves in interest rates and the ongoing search for yield by many investors.

With U.S. stocks surging to new highs and trouble brewing elsewhere in the world (the failed Italian referendum and resignation of Matteo Renzi, not to mention the continued decline in the Chinese currency), I’ve been getting questions about whether investors should just stay here in the USA.

The stock market keeps hitting new highs. The Dow Jones Industrial Average crossed 19,000 for the first time last week, and the S&P 500 is up to 2,200, itself a record. In many ways, the market is off to the races.