Seth Meisler, CFA, CPA, CFP® and Marc Usem, MBA give their analysis of what's going on in the market.
by Marc Usem
We are often asked to explain why certain asset prices increase and others decrease. Since the presidential election, these questions have only become more frequent. So, why did prices of stocks go up following the presidential election? The simplest explanation was given by famed investor Howard Marks, who stated that the reason that stocks go up is that there are more buyers than sellers. Likewise, asset prices decrease when there are more sellers than buyers. While this answer may seem flippant, the basic relationship of supply and demand actually does a better job explaining price movement than the reasoning by many journalists who ascribe a myriad of other factors.
By Steve Lear
This is the second follow-up article in my 2013 series titled “What is the purpose of money now? v.2013.” Here, I will focus on charitable giving.