Think back to 2012 for a moment, unemployment was well over 8%, companies were announcing job cuts and losses, banks were struggling to meet their new tougher capital requirements, oil was nearly $100 a bar-rel, wages were stagnant, Greece had just received a government bailout to avoid defaulting on its debt and Europe was in […]Continue Reading →
Stock markets in the U.S. and abroad continued an upward trend during the third quarter. Natural disasters, domestic political conflicts and international tensions were unable to derail the second longest running bull market in history. While the market continued to favor growth stocks over value stocks, the average diversified U.S. stock fund advanced +4.20%, while […]Continue Reading →
Almost all risk assets enjoyed gains for the quarter, with the average diversified U.S. stock fund gaining +4.8%, international stocks +7.25% and emerging markets returning an impressive +11.49%. The exception was commodities, which declined -6.2%. The first quarter of 2017 saw an ex-tension of the stock rally that began after the 2016 elections. The U.S. […]Continue Reading →
Regardless of whether investors are rejoicing or mourning after the November election, one fact that can’t be disputed is that a dramatic shift in sentiment has taken place. Both consumers and businesses are reporting their highest confidence numbers in over a decade. The climate has suddenly changed, the Dow surged over 9% in the first […]Continue Reading →
Fixed in the memory of many investors are two momentous bear markets: The tech bubble in 2000 and the fi-nancial crisis of 2008. Both were uniquely painful. It’s been 7 years since the 2009 market lows now, where does the time go? The S&P 500 has been on a strong run for those 7+ years […]Continue Reading →
While a little skepticism is good, some investors take it too far. The last few quarters have certainly given the skeptical investor plenty of concerns: Negative interest rates, chaotic European Union and U.S. election politics, volatile energy and stock prices and abrupt drops in U.S. government bond yields, just to name a few. The recent […]Continue Reading →
It’s funny how we try to rationalize our behavior by carefully choosing words that seem to help make what we are doing sound more logical. Nobody likes to use the term “market timing” because it’s widely known that market timing doesn’t work and should not be attempted.
To quote Shakespeare, “A rose by any other […]Continue Reading →
A quick glance at the 2015 price returns of the S&P 500 (-0.7%), Dow Jones (-2.2%) or even US Aggregate Bond Index (-1.9%) might give one the impression of a fairly flat investment landscape. A closer study reveals that 2015 was a very volatile and fairly negative year, and in many ways, humbling. Broader based […]Continue Reading →
Stocks posted their worst quarter in nearly four years. At one point, stocks were 13% off their highs, finishing the third quarter down -8%. 90% of all mutual funds, including index and exchange-traded funds (ETFs) lost money during the quarter.
It was about time. Stocks had not experienced a 10% or more decline since 2011, […]Continue Reading →
Sometimes we make things more complicated than they need to be. Take investing for instance. One would think that turning $100,000 into $500,000 over the last 20 years would require some pretty sophisticated stock picking skill or an ability to know when to get in and out of the market. After all, there were 3 […]Continue Reading →