Q1 2023

After a difficult 2022, both stocks and bonds got off to a strong start in the new year. Softer-than-expected data on inflation in January led to falling long-term interest rates and optimism that the Federal Reserve rate-hiking cycle was coming to an end. This led the S&P 500 to post its second strongest return for […]

2022 End of Year Letter

Each year on the last day of trading, the traders on the floor of the New York Stock Exchange close out the year by singing the song Wait Till The Sun Shines Nellie by Buddy Holly. The basic message of the song – look to the future, it’s going to be better – seems particularly […]

First Quarter of 2022

The first quarter of 2022 was uniquely challenging as most major asset classes turned in negative returns, and asset classes that have historically provided stability (bonds) to a portfolio were down more than more volatile asset classes (stocks).  Indeed, U.S. bonds, as measured by Bloomberg U.S. Aggregate bond index, suffered its worst quarter in more […]

4th Quarter of 2021

If you follow U.S. financial media, you might be surprised to know that financial markets turned in somewhat mixed results in 2021. U.S. equities, which dominate the news coverage, did indeed generate very strong returns in 2021. However, fixed income returns were flat-to-negative for the year and international stocks lagged the performance of U.S. stocks […]

2nd Quarter of 2021

Financial markets followed through on recent momentum to generate strong returns for investors in the second quarter of 2021. Equity markets in the U.S. led the way once again with the S&P 500 index up 8.2% in the quarter (excluding dividends), while foreign stocks and the stocks of smaller U.S. companies were up a little […]

First Quarter of 2021

After one of the most volatile years in history, financial markets began 2021 in relatively quiet fashion. Equity markets around the world generated solid returns in the quarter. U.S. stocks, as measured by the S&P 500 index, were up 5.8% (excluding dividends), while developed and emerging international equities were up 2.8% and 1.9%, respectively. In […]

2020 Year End Review

While 2020 was a difficult year for many people in many respects, it turned out to be another strong year in financial markets. Despite the Covid-19 pandemic which ground the global economy to a halt in March and drove precipitous declines in global equity markets, most major asset classes generated positive and relatively strong returns […]

Third Quarter Update

In the third quarter, equity markets continued their recovery from the March lows. US. stocks as measured by the S&P 500 index were up 7.6% in the quarter, bringing the year-to-date increase to 3.2%, excluding dividends. As shown in the table below, the stocks of foreign companies and smaller US. companies also moved higher during […]

Mid Year Market Updates

The first half of 2020 will go down in the books as an extraordinary time in modern history. A health pandemic has swept the globe, and the response to the pandemic has triggered a very deep recession with more people in the U.S. unemployed than at any time since the Great Depression. Markets have responded […]