Rockbridge Institutional – November 2023 Market Review
Investing in the “Magnificent Seven” Now the leading high-tech companies are the “Magnificent Seven” (those of a certain age will relate). These companies – Apple, Alphabet (Google), Amazon, Meta (Facebook), Microsoft, Nvidia, and Tesla – make up about 30% of the S&P 500 index. While it is a stretch to expect an investor is lucky […]
Rockbridge Institutional – October 2023 Market Review
Interest Rate Risk in Bonds Rapidly rising interest rates explain bond market losses in recent periods. The Bloomberg U.S. Aggregate Bond Index, a reasonable proxy for the U.S. bond markets, is off 4% over the past three months, confirming that bonds are risky. Bond risk is from two sources primarily – credit risk and interest […]
Commentary from Fed Meeting (September, 2023)
Each month, the Federal Open Market Committee (FOMC) issues its position on the current economic conditions and outlook on future forecasts and projections. The main areas of focus are inflation, unemployment and interest rates. Here are a few takeaways from Chairman Jerome Powell’s press conference: As predicted, the FOMC voted to hold the federal […]
Rockbridge Institutional – August 2023 Market Review
“Irrational Exuberance” and Market Pricing The price of Nvidia stock, a software design and development firm that manufactures chips integral to the gaming industry and, consequently, a proxy for Artificial Intelligence (AI), skyrocketed from $142 per share on December 30 to $494 per share today – a gain of over 230%. Does this increase in […]
Rockbridge Institutional – July 2023 Market Review
Inflation and a “Soft Landing” Inflation expectations and the economic impact of the Fed’s ratcheting up its Target Interest Rate has been a major source of uncertainty. So far, the trajectory of inflation has been in the right direction and unemployment has remained low. The trailing 12-month change in the Consumer Price Index (CPI) has […]
ROCKBRIDGE INSTITUTIONAL – June Market Review
Predicting Future Prices If we could predict future prices for financial assets, then investing would present no problems. As Will Rogers tells us: “Don’t gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.” Unfortunately, it doesn’t […]
ROCKBRIDGE INSTITUTIONAL – May Market Review
Stocks Stock markets are volatile waiting for some resolution of today’s uncertainties, which include not only the Debt Ceiling, but also the banking system, the trajectory of interest rates and the Fed’s perseverance, inflation expectations and the prospect for a recession. Monthly stock returns are mixed – Domestic stocks are little changed; international stocks are […]
Staying In Your Seat
Emotional decision-making fueled by fear or greed can cloud our judgment and lead to irrational investment choices. Reacting to short-term market fluctuations or making impulsive trades based on attention-seeking headlines often leads to poor investment performance. By staying in your seat and focusing on your long-term investment strategy, you can mitigate the influence of emotions. […]
Rockbridge Institutional – April 2023 Market Review
Stocks Large cap stocks, traded in both international and domestic markets, were up in April; emerging market stocks and stocks of small companies, on the other hand, were down. Year-to-date stocks produce positive returns that range from 1% in small cap stocks to almost 12% for developed international markets. Year-to-date stocks have performed reasonably well […]
Rockbridge Institutional – March 2023 Market Review
Stocks After enduring ups and downs due to the uncertainty in the financial system and the Fed’s response triggered by the collapse of Silicon Valley and Signature banks, stocks ended the first quarter in positive territory. Domestic large cap stocks, International developed markets and emerging markets were up between 4% and 8%, small cap stocks […]
