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… […]
Market Timing – A Losing Game
The stock market crash of 2008-2009 is a very recent memory for many investors who still bear the scars from the experience. At Rockbridge, we also have prospective clients who walk into our offices saying that they haven’t recovered yet from the financial pain their portfolio endured over those several months. Why? It’s usually a […]
Unique Planning Opportunities with TIAA Traditional
Teachers Insurance and Annuity Association, better known as TIAA was founded almost 100 years ago (1918). TIAA provides retirement plan solutions for a majority of the higher education institutions in the United States. One type of investment, called the TIAA Traditional Annuity, is a unique fixed income investment option that is available in TIAA 403(b) […]
Market Commentary – January 2017
Stock Markets While markets were down early in the quarter, most, but not all, have bounced back since the Election with small company stocks and value stocks leading the way. Stocks traded in international markets and emerging markets have not fared as well in this period, reflecting a strengthening of the dollar. This means a […]
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 […]
Post-Election Reflections
Whether you find the election results exciting or shocking, we are now faced with the question, “What’s next?” With respect to your investments, here’s a quick reminder of how we feel about that: Ample evidence informs us that it is unwise to alter your long-term investment strategy in reaction to breaking news, no matter how […]
Market Commentary – October 2016
Stock Markets It was a pretty good quarter for stocks, with the riskier small-cap and emerging market stocks leading the way. REIT’s gave back some of their robust returns of prior periods. The year-to-date numbers for stocks are solid as well. The riskier markets have done better this quarter, which is consistent with an increased […]
Market Commentary July 2016
Stock Markets Just look at the short-term variability in the various equity indices shown in the accompanying chart. It shows how markets behave through time – some markets are up substantially while others are down. Of course, this variability is reduced by holding a commitment to each, but it means periodically enduring down markets while […]
Another Surprise – Yet Again!
The recent vote in Britain to exit the European Union is yet another reminder of how markets often react negatively to surprises. We cannot help but ask ourselves, “Is it different this time? Maybe this is the event that upends markets as we know them, and I would be stupid not to react!” As it […]