After years of strength, is the U.S. dollar poised for a fall? The U.S. dollar has been in a sustained uptrend over the past decade, contributing to persistent underperformance across numerous asset classes but most acutely affecting both foreign equities and natural resources.1 Given the U.S. dollar’s position as the global reserve currency, there are … Continue reading U.S. Dollar: What Goes Up, Must Come Down?
On occasion, accelerating income taxes can make sense. For many people, the confluence of the global pandemic and subsequent economic recession has potentially caused the following: employment termination, reduced hours, work furloughs, the elimination of RMDs for 2020 (the CARES Act), and significantly less capital gains due to the precipitous drop in the stock market. … Continue reading Financial Planning Tax Tips in 2020
For the first time in history, the Fed is buying corporate bonds. Credit markets participated in the overall market recovery in the second quarter, thanks in large part to the actions of the Federal Reserve. All categories of bonds showed positive returns in the second quarter. The Fed was successful in averting a credit crisis … Continue reading Credit Markets: Thanks to the Fed
After a strong 2019, 2020 appeared to be a promising year. Unemployment was at a record low, and wages were growing at a faster pace than almost any other time during the decade long economic expansion. Interest rates were low, consumer credit showed little signs of stress, and the consumer was financially healthy. 2020 was … Continue reading The Sentiment Virus
In recent weeks as financial markets reeled in response to ongoing coronavirus headlines, few asset classes were spared. Even parts of investment grade Fixed Income, the asset class intended to act as a buffer to more risky asset classes, saw stress. Aside from cash and some areas of Fixed Income, there weren’t many places investors … Continue reading Real Estate: Opportunity Amidst the Chaos
During the worst first quarter in 124 years for equities, credit markets were not immune to the unprecedented volatility in capital markets due to the coronavirus outbreak. With a yield of 1.92% at the beginning of the year, the benchmark 10-year U.S. Treasury bond ended the first quarter at 0.70% – a stunning 64% drop. … Continue reading Credit Markets: Unprecedented Volatility
In response to the COVID-19 global pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES) on March 27th, 2020, a $2 trillion stimulus package – the largest in history. More than anything, this is truly a rescue package chalk full of provisions to help support individual Americans, small businesses, large corporations, and, … Continue reading The CARES Act
Market Impact: The S&P 500 closed the week of February 28 down 13% from its high. This may seem like a rude reminder that downside volatility exists in the market, after hitting an all-time high only a week before. But since 1928, the S&P 500 has experienced a 10% correction, on average, every eighteen months, … Continue reading Coronavirus: Market Volatility and Uncertainty
Over the past 20 years, a series of events starting with the bursting of the internet bubble led to the unprecedented environment we find ourselves in today. We started with “The Great Internet Bubble” followed by “The Great Housing Bubble” then “The Great Credit Bubble” then “The Great Commodities Bubble,” resulting in “The Great Recession,” … Continue reading The Great Normalization
As 2020 begins, the year may change, but human nature does not. Humans evolve and refine their thinking, yet common cognitive biases remain. This is especially true when markets are near lows or, as the new decade begins, near highs. We believe enhancing awareness of these biases can improve long-term portfolio performance. So let’s take … Continue reading FOMO – Battling Biases in 2020 and Beyond
