The Federal Reserve (Fed) is on a mission. And by many accounts, that mission is going well. After inflation rose throughout 2021, the Fed began raising the federal funds rate from near zero in early 2022. By July 2023, the central bank had taken the fed funds target range to 5.25-5.50%, where it has held […]
What Interest Rate Cuts May Mean for Bond Returns Read More »
How could we sum up the market in a year like 2023? If given only a word, resilient might do.
The Stories of 2023 Read More »
It’s that time of year again. Cooler weather is upon us. Colorful lights are starting to pop up on rooftops. The kids are excited as they count down the remaining days of their fall semester. You guessed it. It’s market forecasting season.
Taking a Holistic View of Your Investment Journey Read More »
Bloomberg published an article near the end of December last year reporting outcomes from its latest monthly economic survey.1 Survey respondents included 38 economists who each offered a forecast for 2023. Like many at the time, the survey results were generally pessimistic about the economy. The survey’s median estimated growth rate for U.S. gross domestic
The Certain Uncertainty of Short-Run Economic Predictions Read More »
Market indexes designed to represent total stock markets or broad subsets of a market are generally known to offer investors high levels of diversification. Many well-known indices, like the S&P 500® Index and Russell 3000® Index, hold hundreds or thousands of companies. Yet, by some measures, many major indexes appear more concentrated today than ever.
Index Concentration: Have Some Indexes Become Too Top-Heavy? Read More »
Valuations of publicly traded companies are a frequent topic of conversation among investors and for good reason. Valuation ratios tell us the price of stocks relative to fundamentals like earnings, sales, and book value. In other words, valuation ratios are an excellent way to understand the long-term attractiveness of groups of stocks relative to: a)
Focus on the Horizon: Tuning Out the Noise with Valuations and Returns Read More »
We break down the role that banks play in our economy and show how recent bank failures impacted market volatility.
Take It to the Bank Read More »
Asset classes, like small-cap value or large-cap growth, don’t have one, absolute definition. They same label can represent different methodologies with sizable differences in outcomes, highlighting the importance of looking beyond a name.
What You Might Not Know About Asset Class Returns Read More »
While it might be tempting to chase top-performing sectors, we demonstrate why in a broadly diversified portfolio, every sector doesn’t have to increase in value over any period to earn a positive return over the long term.
In September, we reported on the returns of U.S. stocks during economic business cycles of the past 50 years. There’s reason to believe the U.S. is currently facing a slowdown induced by higher interest rates (i.e., a slowdown in consumer spending) despite positive gross domestic product (GDP) growth during the last quarter following two quarters
Investing Through Tough Times: Bonds Edition Read More »
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