7 Things that are True

Monthly Outlook: February 2020  The new year started off strong with a nearly 3% rise for the S&P500 during the first three weeks. But it couldn’t hold it and gave back 3% during the fourth week of January for a net 0% month. International stocks lost 3.4% probably due to concerns about Brexit happening on January 31st and the coronavirus spreading rapidly. Bonds gained 1.9% as interest rates continued to slide. Gold was the star of the month, gaining 4.2%. As we move into 2020 Month Two, U.S. politics are going to heat up. The impeachment is nearly over, the primaries are starting up in earnest, and opinions are going to fly. In this environment, you may appreciate some facts and truths. Below, we present 7 things that are true about markets: #1 How You Get There Matters Consider two portfolios. The first returns +8%, +8%, +8% for three years. [...]

By |February 3rd, 2020|News, Outlook|

2020 Vision on Markets

Monthly Outlook: January 2020  Happy new year! 2019 was another good year for investors with gains coming from both stocks and bonds. Markets ended the year near their highs but, once again, the destination doesn’t tell us much about the journey. Does anyone remember October to December 2018 when the S&P500 lost 15% in just three months? Luckily, the S&P500 bounced back in early 2019 and was back to even by March. Then markets flip-flopped sideways from March to September. Finally, with help from the Federal Reserve, stock markets started to rally again in October and that has lasted into year end. That dip-rally, then flip-flop, cycle was challenging for us as we constantly strive to keep our investors fully invested in the up-trending markets and to sell/trim the down-trending markets. Our iFolios strategy is designed to help you grow your wealth and to avoid the big loss. We did [...]

By |January 2nd, 2020|News, Outlook|

You Don’t Know That

Monthly Outlook: December 2019  We hope everyone had a nice Thanksgiving and time with friends and family. There are only 27 days between Thanksgiving and Christmas this year so it’s all going to fly by! Retailers will stuff your mailbox and email with enticements and discounts while CNBC and Bloomberg TV will inundate you with market predictions for 2020. They’ll all be convinced that they’re right and brilliant and that you need to listen! From Fifth Avenue to Wall Street, everyone’s pushing something this time of year. Around the office we have a favorite saying of “You Don’t Know That.”  It’s used when one of us spouts off some forecast or prediction, usually from the hip. It’s our way of reminding ourselves to stay humble and that predicting markets is folly even though every other firm seems to do it. Luckily for them, no one seems to remember their predictions [...]

By |December 3rd, 2019|News, Outlook|

How You Get There Matters

Monthly Outlook: November 2019 October was another good month for markets and we’re capturing gains! Although the first two days of the month saw the S&P500 drop 3.0%, it ended up gaining 2.0% for the month. International stocks rallied 3.4% partly because the Euro gained 2.2% against the Dollar. Bonds added just 0.3% for the month. All in all, it was a solid month. As we move into the final two months of 2019, it’s worth noting that every single asset class is back to an uptrend, meaning they are above their 200-day moving average. Uptrends are when we make money so we’re very optimistic. But we’ve seen this flip-flop several times this year. Remember that stocks were up in April, but down in May, up in June, but down in August, up in October…and we’ll see. Let’s hope this uptrend lasts this time and we’ll stay invested for growth [...]

By |November 1st, 2019|Articles, News, Outlook|

Gold > Bonds > Stocks > Cash

Monthly Outlook: October 2019  September was a bit of a stall for global stocks, but at least the long-term trends remain up for most markets. U.S. stocks (S&P500) were up 1.7%, international stocks were up 2.8%, and bonds dipped 0.6%.  The 25% bond / 75% stock benchmark was up 1.3%. Not bad. Looking at slightly longer trends and market performance, however, we can see that global stock markets are at stall speed.  For the past twelve months, U.S stocks are only up 2.9%, international stocks are down 1.1%. Bonds, however, are up a healthy 10.3%. The 25% bond / 75% stock benchmark is only up 2.7% for the past twelve months (and it’s all from bonds!). That’s way below the 6.2% 10-year average benchmark return. What does it tell us when gold is the best performing asset class? In fact, gold is outperforming bonds, and bonds are outperforming global stocks. [...]

By |October 1st, 2019|News, Outlook|

Following the Trends, Not the Tweets

Monthly Outlook: September 2019  August was a dizzying month for stocks with plenty of 1%+ daily moves in both directions. One tweet would drive algorithms to pump the market up 1%+ only to be followed by another tweet that would drive the market down 1%+. In total, the S&P500 oscillated over 700 points in August, or a total of 24%. But, at month end, the cumulative effect was just down -1.8%. International stock markets followed a similar pattern, down -2.4% for the month. Bonds were, again, the best performing asset class, gaining +2.7% in August as interest rates continue to fall. The 10-year US Treasury, for example, fell from 2.02% to 1.51% in August and we see further cuts in the months ahead. Tweets are surely not the best way to manage trade policies and other political matters but that’s where we are. The stock market is just trying to [...]

By |September 5th, 2019|News, Outlook|
Go to Top