Despite a wide range of possibilities, investors are looking for certainty and are willing to pay a high price for it. Those who are running to safety are accepting yields that are well below inflation.
We know that staying the course isn’t easy for many investors. These are difficult times for the world. There’s a lot of uncertainty. During periods like this, it helps to have something to believe in.
In contrast to last week, this week has been a welcome change in the markets. After the Federal Reserve’s announcement of infinite quantitative easing, rumors of an agreement on a $2 trillion U.S. fiscal plan caused the U.S. stock market index to jump this week.
It’s difficult to see negative headlines every day and see markets continuing to slide without it affecting our emotions. In fact, our brains are hard wired to make place a value on emotion during times like these.
This week, the sell-off continued and after today’s (March 11th) loss, we are now officially in a bear market (a loss of 20% or greater) for the first time in 11 years!
It may be scary while you are in the middle of it, but history demonstrates (again and again) that global disease outbreaks have very little effect on the market in the medium to long term. The Coronavirus doesn’t impact our view of what the markets are going to do in the next five, 10, or 20 years down the road.
The start of the year is always a good time to reflect on the previous 12 months. We engage in this process as a firm, taking a week at the beginning of January to review our plans and progress for the past year, and to map out and discuss our goals for the new year.
Volatility was the norm in the third quarter. Whether it was the loss of five million barrels of oil per day from the drone attack on Saudi oil infrastructure, Brexit with UK Prime Minister Boris Johnson losing his majority, or Democrats announcing an impeachment inquiry, there seemed to be an endless barrage of bad news. Despite all this, the markets were mostly positive.
I Know What You’re Thinking It’s the summer, it’s vacation time, and (as much as you might be eager for your kids to be back in the classroom and out of your hair for a bit) the last thing on your mind is school. But I want to spend a few minutes today talking about...