This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. The report also illustrates the impact of globally diversified portfolios and features a quarterly topic. The year … Continue reading “Fourth Quarter 2020 | Quarterly Market Review”

This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. The report also illustrates the impact of globally diversified portfolios and features a quarterly topic. CONTINUE READING

We also share an article that advises long-term investors on how to react to a volatile market and potential recession.

“With activity in many industries sharply curtailed in an effort to reduce the chances of spreading the coronavirus, some economists say a recession is inevitable if one hasn’t already begun. From a market perspective, we have already experienced a drop in stocks, as prices have likely incorporated the growing chance of recession. Investors may be tempted to abandon equities and go to cash because of perceptions of recessions and their impact. But across the two years that follow a recession’s onset, equities have a history of positive performance.”

We also share an article that discusses the impact that the Coronavirus pandemic has had on the stock markets as well as the global economy.

“Market declines can occur when investors are forced to reassess expectations for the future. The expansion of the outbreak is causing worry among governments, companies, and individuals about the impact on the global economy. Apple announced earlier this month that it expected revenue to take a hit from problems making and selling products in China. Australia’s prime minister has said the virus will likely become a global pandemic, and other officials there warned of a serious blow to the country’s economy. Airlines are preparing for the toll it will take on travel. And these are just a few examples of how the impact of the coronavirus is being assessed.”

We also share an article on how, when faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested.

“For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the “lost decade” can help illustrate several periods that may have led market participants to question their approach.”

We also share an article on understanding why timing the market or trying to outsmart it is certainly an effort made in vain.

“Over the course of a summer, it’s not unusual for the stock market to be a topic of conversation at barbeques or other social gatherings.

A neighbor or relative might ask about which investments are good at the moment. The lure of getting in at the right time or avoiding the next downturn may tempt even disciplined, long-term investors. The reality of successfully timing markets, however, isn’t as straightforward as it sounds.”

We also share an article on avoiding fad-based investing.

Investment fads are nothing new. When selecting strategies for their portfolios, investors are often tempted to seek out the latest and greatest investment opportunities.

We also share a great article regarding the costs of investments and how this may impact the decisions you make on your investment choices.

We also share a great article regarding the costs of investments and how this may impact the decisions you make on your investment choices.

We also share an article on understanding the difference between historical averages, current market outcomes and statistical means that can lend themselves to more disciplined investing behavior.

“While some investors might find it easy to stay the course in years with above-average returns, periods of disappointing results may test an investor’s faith in equity markets. Being aware of the range of potential outcomes can help investors remain disciplined.”