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 […]
Rockbridge Institutional – February 2023 Market Review
Stocks All stock markets were down In February no doubt reflecting the ongoing uncertainty of rising interest rates, inflation and an economic slowdown. With its 0.25% increase in its Federal Funds Target Rate, the Fed continues to signal its commitment to rein in inflation. While Consumer Price Index (CPI) increases are looking better recently, no […]
Rockbridge Institutional – January 2023 Market Review
Stocks Stocks continued to climb in January, with small company and non-domestic stocks earning between 8% and 10% leading the way. Domestic large cap stocks (S&P 500) returned 6% for the month somewhat less than other markets, which is a change from recent history. A globally diversified stock portfolio was up 8% for the month […]
Secure Act 2.0 – Business Owners
Earlier this week we put out a summary of some of the changes that individual investors should be thinking about as a result of Secure Act 2.0 going into law. This article focuses on the changes that we think will be impactful to business owners going forward: 1) Small Business 401(k) Credits: For businesses with […]
Secure Act 2.0 – Individuals
Just before the close of 2022, Congress passed a $1.7 trillion government spending bill. Within that 4,000+ page document was Secure Act 2.0, which introduced ~90 new provisions regarding retirement savings. We’re tracking the details of this bill as additional information becomes available, but here are some of the highlights for individual investors: 1) New […]
Stock Buybacks – How do they work?
Stock buyback have been getting negative press lately. The recently signed Inflation Reduction Act calls for a 1% excise tax on these transactions. Many proponents of this tax hope it will dampen the enthusiasm for stock buybacks. It is not clear why. Stock buybacks are a legitimate technique for value maximizing managers to distribute excess […]
The Fed Has Been Busy
The Federal Reserve has significantly altered their guidance in the last few months. The biggest change is the increase in the expected number of rate hikes this year. In December, the Fed was expecting three rate hikes in 2022. Three weeks ago, they increased that forecast to 7, and the market is now expecting 8. […]