While 2023 has been a better year for bonds after last year’s bear market, rising interest rates over the past three months have acted as a headwind. The U.S. Aggregate bond index has gained 0.6% this year, down from a peak return of 4.2% in April. Similarly, corporate bond returns have receded to 1.8% from 5% prior […]
Despite the economic uncertainty of the past year, everyday individuals and households have been resilient. Consumer spending has remained steady in the face of high inflation, rising interest rates, housing market challenges, and layoffs in sectors such as tech. While it has helped that the recession anticipated by many investors and economists has not materialized, this fact […]
Recent economic figures, which show improving inflation and steady GDP growth, continue to support the market rally. The S&P 500 has gained over 20% with dividends this year and is now only 4.5% below its early 2022 peak. The Nasdaq Composite and the Dow Jones Industrial Average have returned 37% and 8%, respectively. These are sharp reversals […]
Click here to download this commentary in PDF format. With global growth steadier this year than originally expected, major markets around the world have rallied. The S&P 500 has gained 18% with dividends while developed and emerging markets have risen about 15% and 10%, respectively. Much of the story is due to the relative strength of the […]
Market and economic expectations have shifted 180 degrees since the start of the year when many investors expected a recession and prolonged bear market. Ongoing economic growth, low unemployment, improving price pressures, and slowing Fed rate hikes have spurred a strong market rally, especially across sectors that struggled last year. While the economic situation is […]
Celebrating as a family member graduates high school and attends college is a joyous event and the culmination of years of hard work. However, paying for college remains a significant source of stress for many households. It’s no secret that the cost of college has risen much faster than inflation over the past 40 years, increasing the financial […]
Major stock market indices made significant gains in the first half of the year due to improving inflation, slowing Fed rate hikes, the absence of a recession, a more stable banking sector, and a strong rally in tech stocks. The S&P 500 has climbed 16.9% with reinvested dividends this year, while the Nasdaq and Dow […]
The past few years are proof that market sentiment can turn on a dime. This year’s strong market rally, with the S&P 500 rising 13% and the Nasdaq gaining 29%, has been driven by technology stocks, improving inflation, and the absence of a recession. While it may be too early to tell, some investors believe we are […]
At its June meeting, the Fed decided to hit pause on rate hikes after more than a year of rapid monetary policy tightening. Since last March, the Fed has raised rates 10 times from zero to 5%, making this the second-fastest rate hike cycle in history. However, some consider the Fed’s latest decision to be a “hawkish […]
The world has been abuzz over artificial intelligence and the possible benefits and threats. These range from the practical such as better tools for knowledge workers and ways for students to avoid writing papers, to the philosophical including what it means to be sentient and the impact on human civilization. In between, there are more mundane questions around the […]