Economic Update — Reviewing Q2 2022

The bear officially came out of hibernation in the second quarter of 2022. Adding to a down Q1, all three major US indices fell by double-digit percentage points in Q2. The Dow ended the second quarter of 2022 10.8% lower, the S&P 500 was off 16.1%, and the NASDAQ posted a bear market performance in … Continued

Is the 60/40 Portfolio Drowning?

Is it time to revisit the 60/40 Portfolio?   “The 60/40 Portfolio Is Dead” (January 25, 2022)… ”Why a 60/40 Portfolio Is No Longer Good Enough” (August 12, 2020)… “Time for FAs to Rethink Portfolio Construction Rules: Execs” (May 13, 2022)… ”Traditional 60/40 portfolio has actually reached its expiration date” (September 2, 2021).    Apparently, … Continued

Q1 2022 Fund Flows: March Buyers Bring April Sellers?

2021 ended with double-digit returns by stocks for the sixth straight year in a row. Through one quarter of 2022, there is clearly a lot of ground to make up. The S&P 500 (^SPX) and Bloomberg US Aggregate (^BBUSATR) are off to a rocky start… A late Q1 rally by stocks lost steam in early … Continued

Economic Update — Reviewing Q1 2022

The post-pandemic stock market rally came to a sobering halt in the first quarter of 2022. All three major US indices fell by double digit percentage points at some point in Q1. The Dow ended the first quarter of 2022 4.6% lower, the S&P 500 finished Q1 down 5%, and the NASDAQ was off 9.1% … Continued

Can You Hedge Inflation with an ETF? Or Bitcoin?

In the second week of 2022, the US inflation rate set a 40-year high of 7%.  Not only are you seeing higher prices at the checkout counter and the car dealership, but inflation can take a toll on your investment portfolios as well. Rising costs eat away at corporate profits, income dries up, and the … Continued

Economic Update — Reviewing Q3 2021

For most of Q3, it appeared the bull market would continue charging, but equities stalled out in September. In the third quarter of 2021, the NASDAQ and S&P 500 both rose by as much as 5% but finished around flat, while the Dow lost 1.5%. The last day of Q3 marked the first time in … Continued

Economic Update — Reviewing Q2 2021

The green flag continued flying for the bull market in Q2 of 2021, as investors continued to load up on assets of all types. With most of the country fully reopened thanks to improving coronavirus vaccination rates, US markets continued their climb. The Dow and S&P 500 gained 5.1% and 8.5%, respectively, but a marketwide … Continued

Economic Update — Reviewing Q1 2021

A big green flag was waved for the bull market in the first quarter of 2021, as investors continued to load up their plates with risky assets. With a presidential election behind us and ever-growing coronavirus vaccination rates ahead, US markets got back off to the races. The NASDAQ gained 3% in Q1, but a … Continued

Economic Update — Reviewing Q4 2020

Not even two brand-new strains of the novel coronavirus could slow the bull market down in Q4. Despite worldwide lockdowns, a blanket of new restrictions in the United States, and even a dose of election uncertainty, the Dow and S&P 500 rose 10% and 11.1%, respectively, while the NASDAQ tacked on a 13.8% gain in … Continued

Economic Update — Reviewing Q3 2020

The bull market raged on in the third quarter of 2020, continuing the second quarter rally. Despite the Covid-19 pandemic keeping a tight grip on the global economy, the S&P 500 and Dow gained 8.9% and 8.2% respectively, while big tech drove the Nasdaq Composite up 11.2% in Q3 on a total return basis. Even … Continued