Putting the national debt in context for investors
The following article by Ethan Gilbert was recently published on Jim Cramer’s website, “TheStreet”, in their retirement section. Ethan began being a guest contributor in 2019. With recent headlines around the increasing national debt, our firm has had clients reach out to ask if they owned Treasuries and if the national debt is something that […]
Reassessing volatility
2018 was a less pleasant time to be an investor. In the four trading days leading up to last Christmas, the market dropped 7.7%, capping off what was a nerve-racking year for investors. But when we delved deeper, we found that 2018’s volatility wasn’t that unusual. One measure of market volatility is looking at the […]
The market fools experts yet again (an interest rate story)
In the last year, interest rates have fallen dramatically. At the end of the 3rd quarter in 2018, the yield on a 10-year note from the U.S. Government was 3.05% and today it stands at 1.68%. This decline in interest rates is unusual, but not unprecedented. Given the vast resources of the world’s largest money […]
Recessions and investing
The word “recession” makes investors feel uneasy and with good reason; the correlation between a bear market and an economic recession is very high. For anyone with money in the stock market, especially those nearing retirement, this can be scary. The “r” word has been making headlines in recent months as investors worry about trade […]
Revisiting bond returns
Most people think of bonds like Certificates of Deposit (CDs). You loan someone money, they give you interest each year, and then at the end of the contract you get back the full amount you initially lent. Over that time, your return should be whatever the interest rate was and if you think of it […]
Employment in the United States
Employment statistics are considered one of the best (if not the best) indicators of the health of our economy. Last Friday, August 2, the department of labor announced an unemployment rate of 3.7%, slightly higher than the 3.6% in April and May, but essentially the lowest it has been since a 3.5% reading in December […]
SEC ruling on the broker-dealer standard of conduct
The financial crisis of 2008 put the financial services industry under significant scrutiny. While the biggest headline grabbers were overleveraged investment banks and practices around mortgage origination, retail investment services also underwent additional regulatory oversight. Specifically, Section 913 of the Dodd-Frank Wall Street Reform and Consumer Protection Act directed the Securities and Exchange Commission (SEC) […]
Not all target date funds are equal
Target date funds have become some of the most common investments in America. Not coincidentally, their rise in prevalence has coincided with 401(k)s gaining in popularity. We have seen it here locally; many of the largest employers in Syracuse (Syracuse University, Carrier, Lockheed Martin, General Electric, Welch Allyn, and Niagara Mohawk/National Grid) had pensions. In […]
2018 Market insights
2018 was a woeful year for investing. All major stock market indexes were down, bonds enjoyed a year-end rally to finish flat, and commodities such as gold and oil fell. Seeing all asset classes drop in unison is unusual and unlikely to continue. Stocks Stocks began the year on solid footing, but fortunes quickly changed […]
Rockbridge’s guide to a “Bear Market”
Depending on the news you read, you may have come across headlines talking about bear markets and stock market corrections. The following is a guide to what they mean and how to put them in the context of history. The conventional definition of a bear market is a price drop in a stock market index […]
