Twilight Zone Redux: A Market Review

The third quarter saw mixed performances across the major asset classes. Large cap U.S. stocks surged, developed international equities and U.S. bonds were flat, while emerging market equities and commodities experienced modest losses. The clear winner for the quarter and year to date has been the U.S., as domestic investors have been rewarded with sizable gains at a time when international markets have suffered losses. The current temptation for investors is to keep piling into the U.S. since it’s worked the best, but astute observers realize that past performance is not indicative of future returns.

Looking into the fourth quarter, investors are left to contemplate the inconsistency that has formed between performance in the U.S. and the rest of the world, and decide whether they should position for a continuation of the current trend or play for a change that begins to close the performance gap.

Four Things Affluent Investors Must Know About Risk Management

Sophisticated investors pay attention when someone brings up the topic of portfolio risk management. Affluent investors are often the most risk averse, perhaps because they have already accumulated enough money during their lifetime to achieve their financial planning objectives. Having reached their accumulation goals, they don’t want to lose their hard-earned gains because the financial…

Under Pressure: A Market Review

In the second quarter volatility waned and performance decoupled as divergent backdrops created variances in returns for assets classes and markets across the globe. The winning trades for the second quarter were in the U.S. energy sector, U.S. small companies, and a select group of technology and consumer discretionary stocks. Energy thrived on a rising…

Volatility awakens!

Volatility Awakens: A Market Review

The beginning of the first quarter was serene and pleasurable, as equity markets levitated on the back of increasing earnings expectations and solid world economic underpinnings. But the market euphoria didn’t last long. February saw volatility awaken from its slumber with a jolt, kicking off a long-anticipated correction that reminded investors there is never a free lunch in the world of investing. As the quarter progressed and the correction intensified, investors were forced to endure an emotional roller coaster as markets swung wildly. By the end of the quarter, most developed markets had chewed through early year gains and returns fell mildly into the red.

How To Set Investment Goals

A sound investment plan begins by determining your objectives while understanding any limitations or constraints that may exist. While most objectives are long-term, a plan must be designed to persevere through changing market environments and be able to adjust for unseen events along the way. If you have multiple goals then each of these goals…

Gameplan For A Market Hangover

The first quarter picked up where the fourth quarter left off, with equity markets celebrating the surprise of a new U.S. administration that global investors perceived to be more business friendly than the previous one. During the quarter, stocks rallied around the world and along with a pullback in the U.S. dollar and signs that global growth was slowly reviving, many international stocks enjoyed gains in excess of the U.S. While the stock market roared, the bond and commodity markets were less enthused, as bonds bounced and commodities gave back some of the gains that accrued towards the end of the year. By the end of the quarter the equity markets were mostly calm, but with tensions that were beginning to build and signal that some of the election-driven luster was beginning to wear off.

Hangovers & Roadmaps

2016 began with a thud and ended with a bang. After one of the worst-ever starts to a year, U.S. stocks managed to rebound and ultimately finish the year with solid gains. Much of the rise came in the final few weeks of the year, following the surprising results of the U.S. presidential election. Indeed, there has been an abrupt change in market sentiment, and asset prices have largely taken their cues from a recalibration of economic expectations in the wake of the surprising Trump victory and Republican sweep of Congress.