2021 Q4: Can Markets Keep Rising?
2021 delivered another solid year of global stock market returns. On the heels of a surprisingly excellent 2020 and a terrific 2019 before that, it is natural to feel apprehensive and question if this rising market can persist. Human nature typically wants to apply the laws of physics to equity markets with a “What goes up must come down” mentality. Although this is true for physical objects, it’s not true for stock markets. Equities don’t play by the laws of physics but rather by the laws of finance. What exactly do these laws of finance suggest? Stocks always have a positive expected...
Read More2021 Q3. What’s Up with the Housing Market? Boom or Bubble?
Did you hear about that couple who just sold their house for $200,000 under asking price? No? Neither did we.Rather, did you hear about the couple who just sold their house for $700,000 over asking price after a week on the market and got an all-cash sale with no contingencies (and 26 other people putting in offers)? Yes – we did too. That’s just about a daily occurrence these days. The housing market has been on a tear and has left many heads spinning and wondering what is going on. Will this continue? Is this a bubble that’s going to pop? Is now a good time to buy or to sell?Several...
Read More2021 Q2: Should You Invest in Bitcoin?
You’ve likely been aware of how much hype there is surrounding Bitcoin these days. You may be hearing stories about a neighbor’s friend making a fortune trading the cryptocurrency. And that might leave you wondering if you are missing the boat. Should you jump into Bitcoin or other cryptocurrencies?
Read More2021 Q1: The Rearview Mirror
Global stock markets continued their run of healthy returns to deliver a solid first quarter of 2021 with the U.S stock market up 6.4%, developed international markets up 4% and global real estate up 6.2%.
Notably, smaller value stocks, the kind we emphasize in our portfolio construction, have had an amazing resurgence, gaining 21% in the first quarter and whopping 97% over the last 12 months!
What is also remarkable is to look beyond the quarter to the last full 12 months through 3/31/2021 – stock market returns were extraordinary (See below).
Read More2020 Q4: The 2020 Masterclass
If last January you were shown a crystal ball illustrating the global health pandemic and political turmoil that would unfold in 2020, you might just have thought it better to sit this one out of the markets.
Read More2020 Q3: Should we adjust investment strategy for the upcoming election?
It’s natural to question how the upcoming presidential election is likely to impact the economy and financial markets and to wonder how best to position your portfolio for the different potential outcomes.Fortunately, much research on this question offers us the answer: Just stay the course – there is no reliably predictable winner or loser from the changing political landscape. And all landscapes have rewarded investors over time.More specifically, election years have, on average, delivered positive returns in line with non-election years. The average return of the S&P 500 index during...
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