Is the stock market overvalued?
Many of our clients have been asking why the stock market has recovered so much in the last two months while the economy is shrinking, and unemployment is hitting record highs. Implied in the question is whether the stock market is “overvalued” and will drop in the near future. The stock market may drop in […]
Rebalancing – why buy stocks now?
Rebalancing the allocation among risky assets in your investment portfolio is an important discipline. It provides a structured way to maintain consistent risk exposure over time and forces us to “buy low and sell high” when it is not always the comfortable thing to do. This quarter is a good example, in the midst of […]
Market commentary: Q1 2020
Stock Markets The damage to stocks from the Coronavirus pandemic is shown in the chart below as all markets are down dramatically. The domestic large cap stock market (S&P 500), driven by the largest tech companies, held up a little better. Except for this market, this quarter’s falloff brought the five-year returns to essentially breakeven […]