Archive for the
‘Stock & Bond Markets’ Category

The US economy is struggling through its worst decline since the 1930s. Corporate earnings have plummeted, and numerous CEOs are refusing to offer forecasts for upcoming quarters. Nonetheless, the major stock indexes have rallied to or above all-time highs. Investors appear willing to disregard weak fundamentals so long as the Federal Reserve continues to produce [...]
Late in the second quarter, I wrote To Be Equity-Lite or Equity-Heavy?, which spelled out the predominant arguments for and against significant equity ownership in the current environment. I encourage you to read or reread that article to evaluate your own reasons for remaining either equity-lite or equity-heavy. Departing from our typical Quarterly Commentary format, [...]
Almost all investors have at least a general familiarity with the long-term performance record of stocks, bonds and cash equivalents. Over the 90-year span from the end of 1925 to year-end 2015, common stocks provided an average annual total return of 10.0%; Intermediate U.S. Government Bonds 5.3%; and risk-free U.S. Treasury Bills 3.5%. All this [...]