Blog
How Loss Aversion and the Sequence of Returns Impact Investors
The S&P 500 index recently closed above 5,000 and set a new all-time high, less than three years after it first crossed the 4,000 mark. While some are understandably nervous any time the market is near record levels, investors also tend to grow more bullish as the momentum continues…
September 2024 Market Overview
Review the latest data and information regarding:
- Asset Class performance
- Breakeven Returns
- Consumer Spending
- Consumer Price Index
- Stock Market Pullbacks
- Global Stock Market Cycles
- Global Stock Market Performance
- S&P 500 Equal Weight Recent Returns
- Interest Income on Cash
- Traditional Sources of Bond Yield
- Global Market Summary,
David Booth's Dimensional Stirs Up Old Passive-Investing Fears
Wall Street has long thought that one of passive investing’s biggest flaws was fading away. Not so fast, says Dimensional Fund Advisors.
The so-called Index effect, where stocks joining a major benchmark display abnormal returns in the days leading up to their addition before reversing after, is alive an well, according to the pioneering quant firm. As a result, Investors with trillions of dollars in passive products are leaving “returns on the table,” Dimensional argues in a new study…
Special Update: Perspective on the Fed and Market Sell-Off
To paraphrase Ernest Hemingway, shifts in the stock market often occur “gradually, then suddenly.” Over the past month, the market has rotated from large cap technology stocks to small caps and other sectors…
Why the 4% Rule Is Only a Starting Point for Retirement
Planning for retirement has never been more important and yet so challenging. Given the difficult inflationary conditions of the past two years, the risk that worries most retirees continues to be outliving their savings. This is because, when it comes to markets and the economy, we can’t control the timing of events – including day-to-day market swings and whether investors begin retirement in a bull or bear market. What we can control, however, is our own behavior by staying disciplined.
Special Update: President Trump’s Election Victory and Investing
After a historic campaign, Donald Trump has won the 2024 presidential election and Republicans
have won control of the Senate. For half the country, this is a cause for celebration, while for the
other half, this is a disappointing result that will require time to process. This reflects the divisions
in our country on both social and economic matters that we hope will heal in time.
The stock market has performed well across both parties
Why Cash Is Not a Long-Term Investment
In times of market uncertainty, investors often seek the safety of cash. This has been true over the past several years as markets have swung due to the pandemic, geopolitical events, Fed rate hikes, inflation, gridlock in Washington, technology trends, and more…
How Tax Proposals and the Election Impact Investors
With less than two months until the presidential election, the policy platforms for President Donald Trump and Vice President Kamala Harris are gradually forming. Through speeches and debates, each candidate is laying out what they stand for and how they would change existing policies. For investors, perhaps the most scrutinized area is taxes, and there are concerns over how changes to tax rates could impact both Wall Street and Main Street. How can investors maintain perspective as we approach November 5?
What the Trump Trade Means for Long-Term Investors
While the political world will focus on the election for some time, financial markets have already
shifted their attention to the next administration’s policies, Federal Reserve rate cuts, and the
underlying economy.
In the remainder of the week following election day, the S&P 500 gained 3.7%, the Dow 4.2%, and
the Russell 2000 index of small cap stocks surged 6.1%. Bitcoin also rose above $80,000 for the
first time. Even though this sudden jump in markets is positive for portfolios, it’s always important
to stay disciplined by maintaining a long-term perspective and focusing on fundamentals.
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