2024 Year End Letter
Financial markets had another very good year in 2024, as all the major asset classes generated positive returns. However, there was a high level of bifurcation in returns both within and across asset classes. Large U.S. stocks led the way once again, as the S&P 500 Index was up over 23% (excluding dividends). This is […]
Q3 2024
Financial markets experienced elevated volatility in the third quarter, but as the final three months of 2024 get underway, stocks are at record highs and bonds are also producing solid returns. U.S. stocks, as measured by the S&P 500, rose throughout July, before experiencing an almost 10% decline in August due primarily to renewed recession […]
Q2 2024
Global equity markets posted another quarter of solid gains and added to a dramatic 18-month performance rebound. A continued rally in the stock prices of the largest U.S. companies by market capitalizations (mostly Technology stocks) once again drove the U.S. equity market’s gain. The S&P 500 index was up 3.9% in the quarter and is […]
Q1 2024
Financial markets picked up where they left off at the end of 2023, with a strong start to the year in the first quarter of 2024. Numerous U.S. equity benchmarks reached new all-time highs, led by the S&P 500 (large-cap stocks) which was up 10.2% in the quarter and is now up nearly 28% from […]
Politics Investing Election
Take Your Politics Out of Investing In case you weren’t aware, 2024 is an election year. With Super Tuesday’s results behind us, it looks almost certain (barring a surprise 3rd party candidate) that voters will have the same choice they had in 2020 – Donald Trump or Joe Biden. In our experience, politics often becomes a […]
Q2 2023
In our 2022 year-end letter we referenced a Buddy Holly song (Wait Till The Sun Shines Nellie) and its message – look to the future, it’s going to get better – in an effort to instill confidence that financial markets would eventually recover from the difficulties experienced last year. Even as we wrote those words, […]
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 […]