Understanding bond returns
We had several clients this year reach out to ask how bonds were performing in their portfolios. These are great questions, so we created a few items to address what you see in your statements. Some people notice they have held bonds for several years but seem to have a loss with their holding. This […]
How to prepare for a market correction
It’s simple. Don’t. A common question we receive is “how do I prepare for the inevitable stock correction?” There are two answers to this question: the one you want to hear (which is wrong), and the one you don’t want to hear (which is right). Mainstream media wants you to believe that you can outsmart […]
Market commentary – july 2018
Stock Markets Returns from various stock market indices over several periods ending June 30, 2018 are shown to the right. Here are a few highlights: Domestic stocks continue to lead the way. REITs were up nicely for the quarter, but non-domestic stocks were down. Due to political turmoil and the specter of a trade war, […]
Market commentary – january 2018
Stock Markets Returns from various stock market indices over several periods ending December 31, 2017 are shown below. The past quarter was good for stocks – REITs lagged. Over the past year, returns from stock indices, especially emerging markets, were well above longer- term averages. Over longer periods, domestic market indices were well above those […]
Market commentary – October 2017
Stock Markets Equity market returns over several periods ending September 30, 2017 are shown on the graph to the right. Here are a few highlights: Stocks provided above-average returns over the past quarter – REITs lagged. Non-domestic markets led the way in recent periods; over longer periods it was domestic markets. While it would be […]
Market Commentary – July 2017
Stock Markets The chart at right shows stocks performing well in the past quarter and six-month periods. Year to date, domestic large-cap stocks were up about 9% while small-cap stocks were up 5%. Stocks traded in international developed markets and emerging markets were up 14% and about 19%, respectively. Over three, five and ten years, […]
Market Commentary- April 2017
Stock Markets The accompanying chart illustrates the diversification story. It shows returns in several markets over both the March and December quarters. The upward sloping blue columns of the December 2016 quarter show an increase from the low (4% loss) in emerging markets to the high (14%) for the market of small-cap value stocks. Note […]
I Thought Interest Rates Were Going Up – What Happened?
On March 15, 2017, the Federal Reserve increased interest rates for just the third time since the financial crisis in 2008-2009. Investment theory tells us when interest rates rise, bond prices fall, so rising interest rates are bad for bond returns. However, bonds have performed well since the Fed raised rates a few weeks ago… […]
Interest Rates Are On The Rise – What Should I Do About Bonds Now?
There is much talk and concern about increasing interest rates, which will not be good for bond performance. Below are responses to some of the specific questions we have received from clients. Q: Why have interest rates increased since the election? A: Many of the ideas put forth by President-elect Trump are perceived to be […]
Market Commentary January 2016
Stock Markets In 2015, domestic large cap stocks (S&P 500) and REITs were up while other markets were down – emerging markets were off big! The positive results in the S&P 500 were driven by just two stocks – Amazon and Google. Otherwise it would have looked like other market indices. These results, I think, […]