Coming into 2024, global financial markets are at an inflection point. U.S. 10-year Treasury rates have fallen from the 5.0% October 2023 peak to just under 4.0%.1 Stocks have rallied aggressively, with U.S. equity market indices close to or, in the case of the Dow Jones Industrial average, at all-time highs. Fear of a looming recession in early 2023 has… Read More
Archive for the ‘ Investment Management ’ Category
Q2 2023 Market Recap
Strong equity market performance in the second quarter reflected better-than-expected economic data and increasing evidence that disinflation is gaining traction. Expectations surrounding accelerating innovations in artificial intelligence also contributed to very strong performance in the tech sector which propelled the NASDAQ to a 13% gain in the second quarter and contributed to the S&P’s impressive return. Fixed income returns were… Read More
Q1 2023 Market Recap
Equities and bonds had a strong start to the year, with the Nasdaq having particularly strong performance, finishing the quarter up 17.05%. Broad strength in equities reflected positive economic reports, increasing hope in disinflation and a soft landing, the reopening of China’s economy following its Covid policy pivot, as well as warm weather in the U.S. and Europe that provided… Read More
Q4 2022 Market Recap
Despite a 4th Quarter rally (the S&P finished up 7.1%), major market indices finished the year down reflecting surging inflation, Fed monetary policy, economic fears, and geopolitical events that included the Russian invasion of Ukraine and China’s Covid-19 policies. The S&P 500 finished the year down 19.4% and the Nasdaq was down 33.1% as interest rate hikes particularly weighed on… Read More
Q3 2022 Market Recap
Further tightening by the Federal Reserve continued to pressure both equities and bonds in the third quarter. The market rallied over the first half of the quarter as investors anticipated the Fed may slow the pace of rate hikes or could pivot to rate easing in 2023, especially after a slightly better-than-expected July inflation report. However, the Fed quickly pushed… Read More
What You Need to Know About I Bonds
Interest in I Bonds has skyrocketed as inflation reached levels not seen since the 1970s, and investors look for safer vehicles to invest their money and hedge against inflation. At Prosperity – An EisnerAmper Company, we think I Bonds can be a valuable part of an investor’s broader portfolio. Below we answer our clients’ common questions about I Bonds. What… Read More
Q2 2022 Market Recap
Uncertainty about inflation, the path of rate hikes, and concerns about a cooling economy resulted in further volatility during the 2nd quarter, extending the market’s pullback. Yields surged in the quarter as the Federal Reserve accelerated the pace of rate increases with hikes of 0.50% and 0.75% in May and June. The 10-Year Treasury yield reached a peak of 3.49%… Read More
Q1 2022 Market Recap
Volatility is a key theme early in 2022 as the S&P finished down 4.6% in 1Q22, and the U.S. Aggregate Bond Index was down 5.93%, reflecting accelerating inflation, monetary policy tightening from the Federal Reserve, and heightened geopolitical tensions following the Russian invasion of Ukraine. The yield curve continued to flatten throughout the quarter, with short-term interest rates rising rapidly… Read More
Cost of Inflation: What Are the Effects of Inflation?
Over the past year, we have experienced continually rising inflation levels. Americans are left asking: What is the true cost of inflation? What are the effects of inflation? How high is inflation? How is it permeating through our economy? What is inflation? Inflation is the rise in prices of goods and services. Typically, inflation is caused by demand or supply-side… Read More
Supply Chain Issues: How Supply Chain Challenges Are Impacting our Economy
Having come out of the holiday season, many of us experience problems obtaining goods. Retailers citing supply chain issues and extremely long delivery times left consumers feeling frustrated, confused, and asking questions – Why are we having supply chain issues, how is it impacting our economy, and when will it get better? The supply chain issue has been felt globally… Read More
Q3 2021 Market Recap
The market had a mixed quarter as the S&P finished up only 0.58%. Strong performance at the end of July and in August reflected strong 2Q21 earnings that were broadly above expectations and economic data that showed continued progress despite concerns over the Delta variant. However, the market sold off in September as investor nervousness grew amid concerns over rising… Read More
Q2 2021 Market Recap
The market performed well in 2Q21 as the economy recovered and investors gained confidence that inflation will remain manageable for now. The yield curve flattened as investors expect the Federal Reserve will be ready and willing to address inflation if it doesn’t prove transitory, boosting short-term rates and modestly suppressing long-term economic growth and yields. Large cap outperformed small-cap stocks… Read More
Q4 2020 Market Recap
October’s election-related uncertainty resulted in the worst month for the stock market since March, but the market recovered throughout November and December leading the market to post overall gains for the year despite unprecedented economic pressure created by the coronavirus pandemic. Small-cap stocks outperformed large-cap stocks in 4Q20, likely reflecting increasing economic optimism as vaccination efforts progress, narrowing small-cap’s underperformance… Read More
Is your Investment Plan Ready for Retirement?
Is your investment plan ready for retirement? As you progress through life, your goals are likely to change; however, one thing should remain true through your adult life – you want to save enough to retire comfortably. When you’re younger, this may look like putting a percentage of your income away into a 401(k) or an IRA account. However, as… Read More
Market Recap: Q3 2020
The stock market continued its strong gains in July and August before stumbling in September. By the end of the quarter, markets managed to post overall gains as they continued to dig out from losses earlier this year. However, the gains have not been evenly distributed. Large growth stocks, especially a handful of technology stocks, have largely driven the market’s… Read More