In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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 have been invited by financial media to suspect that the blended value of 500 of the largest businesses in America and the world has “lost” three percent, with more “losses” to come, due to the outbreak in China of a new strain of coronavirus. Permit me to doubt this, and to suggest that you, as goal-focused long-term investors, join me in doubting it.
I do not claim to have any idea how far this outbreak will spread, nor how many lives it will claim before it is brought under control. I’m reasonably certain that many (or perhaps most) of the world’s leading virologists and epidemiologists are working on it, and I believe that their efforts will ultimately succeed. Clearly, this is nothing more (or less) than my personal opinion. But if the rich history of similar outbreaks in this century is any guide, this would seem to be a reasonable hypothesis.
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
Imagine it is early January 2010 and you are reading a review of the financial markets. Investors have been on a roller coaster over the past three years, living through the stress of the global financial crisis and market downturn of 2008–2009, then experiencing the recovery that began in March 2009 and is still going strong.
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
Sell in May and Go Away Was A Bad Idea in 2018. If you sold out of the market Last summer, you missed a 10% increase.
“Sell in May and go away” is an old Wall Street saying that suggests investors to sell their stocks during the summer to avoid a seasonal decline in the stock market. An investor selling their stocks in May would then buy stocks again at the end of the summer (some suggest November) because the summer time-period shows significantly less growth in the market than the other times of the year. Or so the story goes.
The path to success in many areas of life is paved with continual hard work, intense activity, and a day-to-day focus on results. However, for many investors who adopt this approach to managing their wealth, that can be turned upside down.
The Chinese philosophy of Taoism has a phrase for this: “wei wu-wei.” In English, this translates as “do without doing.” It means that in some areas of life, such as investing, greater activity does not necessarily translate into better results.
In Taoism, students are taught to let go of things they cannot control. To use an analogy, when you plant a tree, you choose a sunny spot with good soil and water. Apart from regular pruning, you let the tree grow.
This doesn’t mean that we should always do nothing. In fact, insights from financial science suggest you should direct your investment efforts to the things you can control. These include taking account of your own preferences and sensitivities when choosing investment strategies, diversifying your allocation to moderate the ups and downs, being mindful of the impact of fees, and exercising discipline when emotions threaten to blow you off course.
IN THIS EDITION OF OUR QUARTERLY MARKET REVIEW WE PROVIDE DATA AND ANALYSIS ACROSS MARKETS AND INVESTMENTS.
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.
Q2 2020 | Quarterly Market Review
Wednesday, 08 July 2020
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
CONTINUE READING
Q1 2020 | Quarterly Market Review
Wednesday, 08 April 2020
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
CONTINUE READING
Coronavirus and the Long-Term Investor
Monday, 03 February 2020
We have been invited by financial media to suspect that the blended value of 500 of the largest businesses in America and the world has “lost” three percent, with more “losses” to come, due to the outbreak in China of a new strain of coronavirus. Permit me to doubt this, and to suggest that you, as goal-focused long-term investors, join me in doubting it.
I do not claim to have any idea how far this outbreak will spread, nor how many lives it will claim before it is brought under control. I’m reasonably certain that many (or perhaps most) of the world’s leading virologists and epidemiologists are working on it, and I believe that their efforts will ultimately succeed. Clearly, this is nothing more (or less) than my personal opinion. But if the rich history of similar outbreaks in this century is any guide, this would seem to be a reasonable hypothesis.
CONTINUE READING
2019 Market Review
Friday, 10 January 2020
This report features world capital market performance for the past year.
Overview:
Market Summary
World Asset Classes
US Stocks
International Developed Stocks
Emerging Markets Stocks
Select Country Performance
Select Currency Performance vs. US Dollar
Real Estate Investment Trusts (REITs)
Commodities
Fixed Income
Impact of Diversification
CONTINUE READING
Q4 2019 | Quarterly Market Review
Friday, 10 January 2020
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
CONTINUE READING
The 2010s: A Decade in Review
Thursday, 09 January 2020
January 2020
Imagine it is early January 2010 and you are reading a review of the financial markets. Investors have been on a roller coaster over the past three years, living through the stress of the global financial crisis and market downturn of 2008–2009, then experiencing the recovery that began in March 2009 and is still going strong.
CONTINUE READING
Q3 2019 | Quarterly Market Review
Monday, 07 October 2019
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
CONTINUE READING
Q2 2019 | Quarterly Market Review
Tuesday, 09 July 2019
In this edition of our Quarterly Market Review we provide data and analysis across markets and investments.
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."
CONTINUE READING
What Did I Miss?
Tuesday, 21 May 2019
Sell in May and Go Away Was A Bad Idea in 2018.
If you sold out of the market Last summer, you missed a 10% increase.
“Sell in May and go away” is an old Wall Street saying that suggests investors to sell their stocks during the summer to avoid a seasonal decline in the stock market. An investor selling their stocks in May would then buy stocks again at the end of the summer (some suggest November) because the summer time-period shows significantly less growth in the market than the other times of the year. Or so the story goes.
CONTINUE READING
The Tao of Wealth Management
Wednesday, 15 May 2019
The path to success in many areas of life is paved with continual hard work, intense activity, and a day-to-day focus on results. However, for many investors who adopt this approach to managing their wealth, that can be turned upside down.
The Chinese philosophy of Taoism has a phrase for this: “wei wu-wei.” In English, this translates as “do without doing.” It means that in some areas of life, such as investing, greater activity does not necessarily translate into better results.
In Taoism, students are taught to let go of things they cannot control. To use an analogy, when you plant a tree, you choose a sunny spot with good soil and water. Apart from regular pruning, you let the tree grow.
This doesn’t mean that we should always do nothing. In fact, insights from financial science suggest you should direct your investment efforts to the things you can control. These include taking account of your own preferences and sensitivities when choosing investment strategies, diversifying your allocation to moderate the ups and downs, being mindful of the impact of fees, and exercising discipline when emotions threaten to blow you off course.
CONTINUE READING
CONTINUE READING
Q1 2019 | Quarterly Market Review
Tuesday, 09 April 2019
IN THIS EDITION OF OUR QUARTERLY MARKET REVIEW WE PROVIDE DATA AND ANALYSIS ACROSS MARKETS AND INVESTMENTS.
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.
CONTINUE READING
2018 MARKET REVIEW
Tuesday, 01 January 2019
CONTINUE READING