January Market Recap
None of us need to be reminded of high inflation or the laundry list of challenges that come with it. While the latest Consumer Price Index (CPI) has fallen to 7.1%, the cost-of-living for Americans is still increasing at the fastest pace since the early 1980s. Inflation and high interest rates are undoubtedly real problems, but they do have some silver linings.
Value stocks still valuable after strong year
It was a long time coming for value stocks. The Russell 1000 Value index fell 10% in 2022 compared to a 19.4% drop for the S&P 500 and a 30% loss for the Russell 1000 Growth index. Yes, it was still a “down year” for value stocks, but it was also a banner year in relative terms. A peek at the updated Periodic Table of Investment Returns (also known as the Callan chart) reveals U.S. Large-Cap Value as the best performing equity category last year (trailing only commodities, cash, and gold). U.S. Large-Cap Growth, on the other hand, finished dead last among equities.
December Market Recap
None of us need to be reminded of high inflation or the laundry list of challenges that come with it. While the latest Consumer Price Index (CPI) has fallen to 7.1%, the cost-of-living for Americans is still increasing at the fastest pace since the early 1980s. Inflation and high interest rates are undoubtedly real problems, but they do have some silver linings.
Believe it or not, inflation has a bright side
None of us need to be reminded of high inflation or the laundry list of challenges that come with it. While the latest Consumer Price Index (CPI) has fallen to 7.1%, the cost-of-living for Americans is still increasing at the fastest pace since the early 1980s. Inflation and high interest rates are undoubtedly real problems, but they do have some silver linings.
Bond funds have never looked so bad
Imagine the following scenario: A husband and wife sit down with their financial adviser for a regular review meeting. The discussion includes a summary of recent performance, during which the adviser informs the couple that they have lost nearly 15% year-to-date. Gritting their teeth, the clients then ask, “What about the performance of our bonds?” To which their adviser replies, “That is the performance of your bonds.”
Talented Team, Disciplined Growth Propel Marks Group into Fast 50
None of us need to be reminded of high inflation or the laundry list of challenges that come with it. While the latest Consumer Price Index (CPI) has fallen to 7.1%, the cost-of-living for Americans is still increasing at the fastest pace since the early 1980s. Inflation and high interest rates are undoubtedly real problems, but they do have some silver linings.
History suggests stocks approaching a bottom
We can’t tell you exactly when the stock market will hit bottom. We can, however, offer several reasons why you should feel confident equities are further along in the bottoming process than many would lead you to believe. Before we do, some quick reminders for every investor (and adviser) trying to make sense of where the market goes from here
The battle against inflation rages on, but it’s worthwhile despite the pain
The battle against inflation is taking casualties. Inflation eats into every family’s discretionary income. It is an obvious hurdle for the stock market. It is also an inevitable part of longer-term economic cycles. So, while it’s OK to grit your teeth when ordering an $11 bowl of soup, paying $5 per gallon of gas or buying a house with a 6% interest rate on your mortgage, remember that inflation will not remain this high and neither will the financial pain that comes with it.
Stocks reach a fork in the road to recovery
As ugly a year as it has been for equity investors, conditions have improved in the last two months. The S&P 500 rallied 15% from its June 16 low and in doing so recaptured half its year-to-date losses. That leaves the U.S. stock market at a virtual crossroads, midway between its all-time high and its 2022 bottom. Given how much negativity was priced into equities earlier this summer, it was only a matter of time before the momentum reversed course. That said, there is very little consensus about where the market goes from here.
It’s not too early to harvest your 2022 stock losses
Paying taxes on investment gains is an unfortunate reality of successful investing. Writing a check to the IRS is never fun, but the truth is that a large tax bill typically means you booked a significant return from those investments. You only pay money if you make money. If paying capital gains taxes is an unpleasant side effect of strong performance, then harvesting losses is a silver lining during bear markets.
