From the late 1980s to the early 2000s, globalization was a dominant economic theme. Net benefits were envisioned for all participating economies. In recent years, globalization has fallen from favor as benefits and costs have been assessed and the net result has been unfavorable for many.
Market Update: January 2, 2025
In spite of a notable sell-off in December, U.S. stocks posted a very strong return for full-year 2024. Foreign stock returns were positive but significantly lagged U.S. returns. Inflation uncertainties and fewer than expected reductions in the Fed’s policy rate resulted in higher bond yields and anemic returns for the full year.
Tracking
Many mutual funds, especially exchange-traded funds (“ETFs”), are managed to track a specific market index. A review of some tracking indexes can provide perspective for portfolio construction ahead.
Market Update: December 3, 2024
U.S. markets reacted quite favorably to the election outcome.
Shortfalls
Achieving investment goals requires clear definition of goals, investment horizons and manageable portfolio risk. A review of the impact of time, return and risk can provide perspective on achieving important life goals.
Divergence
Divergence of opinion among investors over economic trends and financial market outcomes is ever-present. A review of some important recent trends can provide perspective for assessing market return and risk expectations in the period ahead.
Volatility
A review of recent stock market volatility with some historical perspective can help provide context for market trends and investing ahead.
Breadth
The broad U.S. stock market posted a strong return for the first half of 2024. A review of individual stock returns by a series of measures can help provide context for market breadth and sustainability of the current market uptrend.
Doubling
The Dow Jones Industrial Average (“DJIA”) reached another milestone last month when it crossed over 40,000 for the first time in its 128-year history.
Themes
Interest in investing in certain themes has grown with the proliferation of exchange-traded funds (“ETFs”). Climate change is a broad investment theme that has spawned clean energy ETFs and an array of sub-theme ETFs including solar, water and batteries. A review of clean energy experience may be informative for assessing the general role of theme investing.