Categories for Market Review

Don’t Just Sit There – Do Something

October 10, 2019 10:00 am

It has been said that golf is an easy game, it’s just hard to play. Much the same could be said of investing. The principles of long-term investment success aren’t particularly complicated. Construct a well-diversified portfolio appropriate for your risk and return needs. Stay the course and let compounding work its magic over time. Easy, right? And yet…it isn’t. Emotions... View Article

Has a Global Recession Arrived

August 21, 2019 8:00 am

Some claim that a global recession has begun following a lot of the recent economic data. Others might argue that major problems only exist overseas, and signs of any recession is not present in the United States. Regardless of who is right, we expect a recession won’t be confirmed until twelve months or longer after the fact. This is similar... View Article

A Stock Market Cycle and Investor Discipline

July 24, 2019 8:00 am

Every point in a stock market cycle brings its own emotional challenges for long-term investors. When volatility spikes, as it did in 2018, investors need to muster their intestinal fortitude and avoid the temptation to flee to cash. In times of extended market doldrums, as we saw in 2015-16 when stocks mostly moved sideways, investors must avoid the temptation to... View Article

Are Investors Missing the Big Picture

April 16, 2019 8:00 am

After a turbulent end to 2018 sent stock indices around the globe into bear market territory, equities staged a big recovery in the first quarter of 2019. For the quarter, the S&P 500 index gained 13.65% and was within a few percentage points of its record high. The Russell 2000 small stock index gained even more, rising 14.58%. Large cap... View Article

Fourth Quarter 2018 Was So Much Fun

January 17, 2019 8:00 am

What did Fourth Quarter 2018 tell us about the future? Not much more than the rest of 2018 did. But in case you missed it, stocks around the globe experienced a significant decline during the quarter, a trend that began in October and accelerated rapidly in December. The downturn was widely attributed to the prospect of continued higher interest rates,... View Article

Did You Give Up on Diversification

December 20, 2018 8:00 am

Once again, the media and talking heads are back at it mourning over the recent “crash” in the stock market and how diversification doesn’t work. Many social outlets such as Twitter, LinkedIn, and Facebook are filled with many of our coworkers, friends and family predicting the next market downturn is just around the corner. They may be very right or... View Article

We Knew Volatility Was Coming

October 11, 2018 9:00 am

Many people have made predictions on when volatility would return. We agree that it has been unusually low for a few years and fully expected it to increase at some point. The truth is that we just didn’t know when nor would we ever try to time the market in anticipation of such events. However, there are many data points... View Article

Crystal Balls and Investor Behavior in 2018

January 18, 2018 9:00 am

As 2018 began, the major U.S. stock market indexes surged to yet another round of record highs. The first week of January saw the Nasdaq index top 7,000, the S&P 500 index clear the 2,700 mark, and the Dow Jones Industrial Average hit 25,000. Following this recent performance, some may ask what role investor behavior has had on portfolio returns.... View Article

Stocks Are Too High

July 13, 2017 10:00 am

“As the major stock indexes have, one-by-one, broken through their previous record highs in recent months, it has been interesting to observe that the dominant reaction among many investors has not been one of celebration but, rather, anxiety.” While the above may sound like current events, it’s actually an excerpt from an April 2013 client letter. The discussion was focused on the... View Article

2016 Market Review: Was It Really Anything Special?

January 27, 2017 8:00 am

Every year as we approach a New Year, it seems a lot of chatter, predictions, and concerns about the capital markets takes place. It is clear the end of 2016 was no different as there seemed to be many pundits, media, and investment managers who continued to paint a picture that it was a “crazy” year. Here’s the punchline: 2016... View Article