5 Insights to Understand Markets in 2024
2023 marked an inflection point for markets with strong gains across both stocks and bonds. The S&P 500, Dow, and Nasdaq generated exceptional returns of 26.3%, 16.2%, and 44.7% with reinvested dividends last year, respectively. The S&P has come full circle and is now only a fraction of a percentage point below the all-time high from exactly two years ago. The U.S. 10-Year Treasury yield climbed as high as 5%...
What Seasonal Patterns such as the January Effect Mean for Investors
While investing often involves recognizing patterns in economic and market data, not all patterns are equally useful or valid. On the one hand, history shows that economic trends such as the business cycle and factors that drive corporate profitability, for instance, do impact markets. On the other hand, there are countless other patterns that investors follow that may or may not affect returns. Distinguishing between these types of patterns is...
How Corporate Profits and Dividends Affect Investor Returns
The stock market has been supported by a healthier-than-expected economy this year, generating returns that have helped many portfolios to partially recover from last year's bear market. Investors now hope these growth trends will translate into stronger corporate earnings since, in the long run, markets tend to follow the same trajectory as profits. With the future of the economy still uncertain, what signs are there that companies might begin to...
Why Investors Can Be Thankful After a Volatile Year
While it may not feel like it, investors truly do have much to be thankful for this holiday season. Over the past year, investors have navigated both short-term challenges due to interest rate swings, the banking crisis, and political battles in Washington, as well as long-term uncertainty resulting from inflation, the Fed, geopolitical conflicts, and more. And yet, through all of this, major market indices have held onto strong gains,...