The stock market has seen both positive and negative volatility over the past few weeks as headlines have focused on trade tariff announcements between the United States and China. While this has been a recurring theme throughout 2018 and 2019, investors have seen their account balances fluctuate and may be wondering: “What has occurred, and what does it mean for my investments?”
Quarterly Performance Despite increasing trade tensions, geopolitical turmoil, and downward revisions to global growth forecasts, nearly all asset classes posted positive returns in the second quarter. The S&P 500 was up 4.3%, International Developed markets1 were up 3.7%, and even the Emerging Market index2 was up 0.6%, despite negative performance in China lowering returns for the asset class. Bonds3 were …
Happy 4th of July! This week, as we celebrate the birth of this country and all things USA, we’d like to spend a moment focusing on other parts of the world as well. Even “America’s favorite pastime” has taken to international adventures with the Yankees-Red Sox game at London Stadium, and today our women’s soccer team is playing England in …
Over the last 70 years, the U.S. has experienced 11 recessions. Recessions have become less frequent since the Federal Reserve got ahold of inflation in the 1980s and learned to balance growth and employment with the associated inflation that comes with it through monetary policy. In fact, we have only seen three recessions since 1982, so that is about three …
The first quarter of 2019 offered the antithesis of the last quarter of 2018. Global equities rallied, up over 12%1 in the first three months of the year, while global bonds also posted positive returns2 as interest rates fell. Sentiment is much more positive, but has that much really changed? Nothing has changed. On one hand, nothing has changed. While …
Global markets have soared in the first two months of the year. Investors have regained their confidence in the Federal Reserve’s monetary policy, and markets seem to have priced in optimistic scenarios playing out in the global landscape. As we near the ten-year anniversary of the market bottom during the Great Recession, it’s a good time to revisit what “volatility” …
In many ways, 2018 was a paradox of a year. US equities and 10-year Treasuries both had negative returns, which almost never happens. Cash was the highest performing asset class for the year1. The United States posted some of the strongest economic growth numbers we’ve seen in years, and yet the yield curve inverted, supposedly warning of a recession. This …
With the approach of the Holiday Season, many investors are wondering if they will enjoy a “Santa Claus” rally in the final weeks of 2018. So far, the headlines have not been filled with Holiday cheer. Global equity markets have fallen sharply as investors have grown increasingly worried about global trade, a hard Brexit, and slowing economic growth. In the US, company-specific news …
As we find ourselves in the middle of the holiday season attending various holiday parties, family gatherings, ugly sweater contests, and open houses, invariably, conversation turns to the stock market. Perhaps an uncle took a bet in a hot internet stock that paid off and now fancies himself the chief investment advisor in the family. Or maybe your colleague lost a bundle …
This article originally appeared in the Knoxville News Sentinel’s business column on October 21, 2018. The market has recently had the long-awaited “hiccup.” I happened to be at an investment conference when the market was off 1,300 points over two days. Dr. David Kelly, chief global strategist at J.P. Morgan, was one of the keynote speakers. He had some excellent …
