News & Insights

Market Review – Q3 2017

by Financial Alternatives on 10/13/2017

  • Emerging markets outperformed developed markets, including the US, during the quarter.
  • In US dollar terms, developed markets outperformed US equity indices but underperformed emerging markets indices during the quarter.
  • The Bloomberg Commodity Index Total Return gained 2.52% during the third quarter.
  • Interest rates increased slightly across the US fixed income market for the quarter, but total returns still remained positive for most investment grade indices.

posted in InvestingNewsletters

Planning Newsletter – Oct 2017

by Financial Alternatives on 10/13/2017

Tax Reform or Not

  • The recent tax proposal would significantly change income taxes, but there are many important provisions that have not been specified.
  • The most noteworthy part of the proposal is a full repeal of the estate tax.
  • Due to the makeup of Congress and the expected costs of the tax proposal, some sort of compromise will be required to push any changes through.

Remembering the Last Crisis

  • The 10 year anniversary of a record S&P 500 high point is upon us, with several other crisis period anniversaries like the Lehman bankruptcy coming in succeeding months.
  • Reflecting on your experience back then and looking at the recoveries of other financial crises can help prepare you for the next one.
  • A key part of a good long-term investing experience is being able to stay with your investment philosophy, even during tough times.

posted in NewslettersPlanning

Market Review – Q2 2017

by Financial Alternatives on 7/13/2017

  • The broad US equity market posted positive returns for the quarter but underperformed both non-US developed and emerging markets.
  • In US dollar terms, developed markets outperformed the US equity market and had similar performance to emerging markets indices during the quarter.
  • The Bloomberg Commodity Index Total Return declined 3.00% during the second quarter.
  • Non-US real estate investment trusts outperformed US REITs.

posted in InvestingNewsletters

Investing Newsletter – Jul 2017

by Financial Alternatives on 7/13/2017

  • Investors continued to earn positive returns in the first half of the year.
  • Nobody knows when the next bear market will occur, but we know that stock markets have had their ups and downs and they always will.
  • Bear markets, which are corrections of 20% or more, cannot be distinguished beforehand from normal 5%-10% corrections which occur on a regular basis.
  • Trying to sell before a bear market usually causes investors to miss the next market up turn because most market drops turn out to be just normal 5%-10% corrections.
  • Accept that bear markets occur on a regular basis and avoid panic selling your stock positions during the downturn.
  • Maintain ample conservative investments in your overall portfolio.
  • Try to ignore the day to day financial news which is often sensationalized to keep your attention.

posted in InvestingNewsletters

Market Review – Q1 2017

by Financial Alternatives on 7/13/2017

  • Looking at broad market indices, emerging markets outperformed both US and non-US developed markets during the quarter.
  • Real estate investment trusts (REITs) lagged their equity market counterparts.
  • In US dollar terms, emerging markets indices outperformed both the US and developed markets outside the US.

posted in InvestingNewsletters

Planning Newsletter – Apr 2017

by Financial Alternatives on 7/13/2017

  • Giving evokes gratitude, improves our health and makes us happier.
  • Giving increases social connection, cooperation and can be contagious.
  • From a financial point of view, effective giving maximizes your possible tax deductions.
  • Personal Charitable Gift Funds make giving appreciated investments simple and easy.
  • Giving to charity from your IRA has significant tax benefits.
  • Giving appreciated stock can be a tax efficient way to give money to family members.
  • UTMA and 529 accounts offer tax advantaged ways to pay college expenses and provide gifts to children and young adults.

posted in NewslettersPlanning

Market Review – Q4 2016

by Financial Alternatives on 2/7/2017

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  • Looking at broad market indices, the US outperformed both non-US developed and emerging markets during the quarter.
  • US and non-US real estate investment trusts (REITs) recorded negative returns and lagged the US and non-US equity markets.
  • Small caps outperformed large caps in the US and developed markets outside the US.

posted in InvestingNewsletters

Investing Newsletter – Jan 2017

by Financial Alternatives on 2/7/2017

Newsletter-Cover-Image-Jan2017 (00083160xAE0F3)

  • Stocks and bonds were volatile in 2016, but overall it was a decent year for patient investors. Intermediate-term bonds performed in line with shorter term bonds in three of four rising interest rate environments – so no changes are planned in these assets.
  • First Trust Deeds continue to provide a high interest yield and should perform well in an increasing rate environment.
  • New all-time highs in equity markets have historically not been useful predictors of future returns.
  • It is impossible to time the market consistently and profitably.
  • Ensure you are comfortable with the risk in your portfolio so you don’t panic and sell your investments during a severe market downturn.

posted in InvestingNewsletters

Market Review – Q3 2016

by Financial Alternatives on 10/12/2016

Index Performance

  • Looking at broad market indices, emerging markets outperformed all other equity markets during the quarter.
  • The US equity market lagged developed markets outside the US.
  • The Bloomberg Commodity Index Total Return posted a -3.86% return during the quarter.
  • US real estate investment trusts (REITs) recorded negative absolute returns and lagged the US equity market.

posted in InvestingNewsletters

Planning Newsletter – Oct 2016

by Financial Alternatives on 10/12/2016

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  • Emotions are running high this election season and investors are nervous about how the election will affect their investments.
  • Tumultuous events have been a constant theme for presidential elections throughout history.
  • In 17 of 18 past presidential elections, a hypothetical $10,000 investment in the S&P 500 made at the beginning of each election year would have gained value 10 years later.
  • Long-term investment success has depended more on the strength of the US economy than on which party occupies the White House during any particular four-year period.
  • Beliefs about which political party is best for the markets may encourage you to vote, but shouldn’t discourage you from investing.

posted in NewslettersPlanning

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Posts are general in nature and do not constitute the rendering of legal, investment, accounting or other professional advice.