In this piece, we review the important lessons that investors learned so far in 2022, and why our Investment Team strives to avoid these mistakes every day. As the painful first half of 2022 ended, a number of previously held asset class records ended as well. In equities, the S&P 500 fell 20% during the … Continue reading 2022’s Painful Lessons
Are we poised to relive the economic malaise of the 1970s and early-1980s? Inflation emerged as the primary concern for the markets during the second quarter. The Consumer Price Index (CPI) reached 8.6% in May, putting to rest any remaining hope that the inflationary pressures of the past year were “transitory.” While there are parallels … Continue reading Stagflation Redux?
During the first half of 2022, U.S. Bonds performed worse than any full year since 1842. According to a May 6, 2022 article* in The Wall Street Journal, the performance of the broad U.S. bond market has performed worse so far this year than in any full year since 1842. The culprits: 1) persistent inflation; … Continue reading Credit Markets: A Historically Bad Year So Far
You can’t control a volatile market, yet you can control your strategies and rein in emotions to lower the probability of making a costly mistake. You can’t control a volatile market. However, you can control your strategies and rein in your emotions to lower the probability of making a costly mistake. Below are some recommendations … Continue reading Smart Things for Investors to Do During Periods of Volatility
Why are markets so volatile even though the Federal Reserve telegraphed their interest rate stance? Under the leadership of Chairman Jerome Powell, today’s Federal Reserve Board was supposed to be different than boards of the past. Although the Fed’s dual mandate continues to be maximum sustainable employment and stable prices, a goal of this board … Continue reading Is the Federal Reserve to Blame for the Recent Market Volatility?
Changing the way investors look at volatility from “risk” to “opportunity” can be the most powerful tool investors can utilize to combat turbulent times. 2021 was one of the better years on record for financial markets. Aside from fixed income, all asset classes delivered positive returns and three – U.S. Equities, Natural Resources and Real … Continue reading Friend or Foe?
How to ensure your financial life reflects your values and leaves the legacy you intend. We’ve had a special visitor come to our house recently. Every few months (twice this past month), my daughter will wake to a crisp $5 bill (thanks, inflation) under her pillow in place of a tooth she lost the day … Continue reading Values and Legacy: Beyond the Numbers
The first quarter of 2022 was one of the worst on record for the bond market. Bond markets came under intense pressure during the first quarter, with all issues posting losses amid one of the worst quarters in recorded credit market history. At their March meeting, the Federal Reserve raised interest rates for the first … Continue reading Credit Markets: Is A Recession Coming?
The consensus seems to feel Chinese equities are uninvestable. Read why the herd could be wrong. The year was 2019. Chinese equities were in the middle of a strong year. Nearly half of the world’s largest technology companies by market capitalization were based in China. The Chinese government was on a mission to catch then … Continue reading The Great Fall of China
What might monetary tightening bring for markets? Markets have navigated the recovery phase of the economic cycle supported by monetary and fiscal authorities who have injected record levels of liquidity into the financial system. That’s changing. The Federal Reserve is expected to increase interest rates in 2022, to help fight inflation, while U.S. fiscal policy … Continue reading Mid-Cycle: Keep Calm and Carry On
