Historically, stocks have provided appreciation that helped investor portfolios grow. Many stocks also provide returns in the form of dividends. Stock prices have certainly gone up over time, but the path hasn’t exactly been a straight line. There have been some queasy, white-knuckle moments along the way when it felt downright uncomfortable to own stocks.…
Market Review The benchmark S&P 500 index posted a 7.0% headline gain to start the year, though performance varied widely by sector and a small group of large, Technology-driven stocks provided the bulk of the gains. Investors sought the perceived safety of robust and resilient cash flows and balance sheets. As expected, the Federal…
Did the S&P 500 bottom on October 12th of last year? Only hindsight will bestow that knowledge. Stubborn inflation and higher interest rates were the big drivers behind the selloff that took us to that October low, but recent data indicates inflation is retreating, comments from Federal Reserve members suggest they may be close to…
Market Review The benchmark S&P 500 index posted a welcome 7.1% gain to close out a challenging calendar year. Earnings results continued to surprise to the upside, although overall growth was more modest, with a 3.5% rise outpacing expectations for no growth. Revenue growth topped estimates by 2.5%, expanding 11.4%. Despite a flurry of four…
Market Review After a 2nd quarter most investors want to forget, the smaller 5.3% S&P 500 drop experienced in the 3rd isn’t any easier to swallow. The net move masks a tale of two markets, with a sharp rally followed by a slightly sharper pullback. Stubborn inflation kept the Federal Reserve on a path toward…
The age-old advice is to “buy low and sell high”, and it’s hard to argue with that logic. We cling steadfastly to the belief that if you buy and stay invested over the long term, you’ll have done exactly that. With history as a guide, the stock market has rewarded investors handsomely, but the path…
Market Review As one market observer noted, the best news about the 1st half of 2022 is that it has ended. The S&P 500 posted a 16.4% decline for the 2nd quarter as nagging inflation compelled the Federal Reserve to raise their target rate a cumulative 1.25%, including the largest single move since 1994. Elevated…
There’s plenty of sagely advice available from savvy investors. One thing most of them have in common is they stay invested. They may keep some cash on the sidelines to take advantage of unexpected opportunities. They may dial stock exposure up when they think it’s appropriate, and they may dial it down when they deem…
Companies paying higher dividends do tend to be more mature. The mature companies investors want to own are still growing earnings, but that growth is probably more moderate than it is for a younger company whose total accessible market (TAM) isn’t yet defined. Apple is a fairly mature company, but they keep coming up with…
This is the most elegant explanation of prudent investment management I’ve ever heard, and it came from Steve Adell. It’s called “The Bucket List”. The idea is to categorize your investment money into three simple buckets which are based on intended use: Cash, Fixed Income, and Growth. You fill the buckets in order. Bucket #1:…