News & Insights

Market Review – Q4 2016

by Financial Alternatives on 2/7/2017

Newsletter-Cover-Image-QMR2016Q4 (00083159xAE0F3)

  • 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

Market Review – Q2 2016

by Financial Alternatives on 7/22/2016

  • Looking at broad market indices, the US outperformed developed markets outside the US and emerging markets.
  • US REITs had very strong positive returns for the quarter, outperforming the broad equity market.
  • Commodities were broadly positive during the quarter. The Bloomberg Commodity Index Total Return gained 12.78%.

posted in InvestingNewsletters

Investing Newsletter – Jul 2016

by Financial Alternatives on 7/14/2016

  • Despite a historic US stock price drop at the start of the year and the recent Brexit vote, most asset classes showed positive returns for the first half of 2016
  • In volatile markets, it’s important to remind yourself of what you really own when you own a diversified collection of stocks as part of your portfolio.
  • Ideally, a client of ours will have underlying stock ownership in 5,500 – 11,500 companies from all over the world.
  • These companies have millions of employees that work diligently day after day and year after year in an effort to increase the earnings of their companies.
  • In aggregate, these companies make a profit and part of this is paid out to shareholders in the form of dividends.
  • Ignoring the often sensationalist day to day financial news and focusing on the progress mankind continues to make can help you maintain a positive long term focus.

posted in InvestingNewsletters

Market Review – Q1 2016

by Financial Alternatives on 4/14/2016

  • Looking at broad market indices, emerging markets outperformed developed markets, including the US.
  • Global REITs recorded the highest returns.
  • Commodities were mixed during the first quarter. The Bloomberg Commodity Index Total Return gained 0.42%. Precious metals led the index with gold returning 16.40% and silver returning 11.87%.

posted in InvestingNewsletters

Market Review – Q4 2015

by Financial Alternatives on 1/17/2016

  • In a turnaround from the previous quarter, the US equity market recorded positive performance.
  • Looking at broad market indices, the US equity market again outperformed both developed ex US and emerging markets during the quarter.
  • In a repeat from the third quarter, US REITs recorded the highest returns, outperforming equity markets.

posted in InvestingNewsletters

Investing Newsletter – Jan 2016

by Financial Alternatives on 1/17/2016

  • 2015 was a difficult year to make money.
  • It is impossible to predict which asset class will outperform decade to decade.
  • Different investments tend to cycle erratically between outperformance and underperformance on a regular basis.
  • The temptation to chase the best performing and flee the worst performing investments is hard to resist.
  • Market corrections occur on a regular basis and should not be feared.
  • We advise remaining patient, disciplined and diversified.

posted in InvestingNewsletters

Market Review – Q3 2015

by Financial Alternatives on 10/21/2015

  • Looking at broad market indices, the US equity market outperformed both developed ex US and emerging markets during the third quarter.
  • US REITs recorded the highest returns, outperforming equity markets.
  • Emerging markets indices underperformed developed markets indices (including the US) in US dollar terms.

posted in InvestingNewsletters

Emerging Markets vs The S&P 500

by Jim Freeman, CFP® on 10/7/2015

The below chart shows how much Emerging Market equities have underperformed the S&P 500 since the financial crisis. It also shows how these stretches of underperformance and outperformance are not unusual. The key to success in investing in Emerging Markets is to rebalance and add to positions during periods of underperformance and to rebalance and take profits during periods of outperformance. Having a dedicated allocation to Emerging Market equities and rebalancing back to this allocation systematically helps you accomplish this.

151007 Returns EM vs SP500 Read more

posted in BlogInvesting

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