Why Investors Need Perspective on the Soft Landing Debate
Stock and bond markets struggled during the first trading week of 2024 as investors questioned the probability of a "soft landing" and what it may mean for the timing and size of Fed rate cuts later this year. The S&P 500 and Nasdaq fell 1.5% and 3.2%, respectively, driven by a decline in large cap tech stocks, while the 10-year Treasury yield climbed to 4.05%. Market-based measures still suggest that...
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%...
Why Bonds Are Increasingly Attractive for Long-Term Investors
The bond market has had a better year in 2023 despite ongoing swings in interest rates. The U.S. Aggregate bond index has rebounded 2.7% year-to-date after briefly hovering in the red a few months ago. This is because inflation continues to improve and many investors believe the Fed is not only done raising rates but may begin cutting next year. This is also in stark contrast to 2022 when the...
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...