News & Insights

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

Planning Newsletter – Apr 2016

by Financial Alternatives on 4/12/2016

  • One early retirement study noted that a withdrawal rate of 4% is relatively safe.
  • Many researchers have evaluated withdrawal rates and related issues since then – proposing adjustments to the traditional 4% rule.
  • One such proposal, the Target Percentage Adjustment (TPA) suggests modifying your withdrawals year by year.
  • Being flexible in the face of market downturns and inflation can allow you to increase your withdrawals in retirement.
  • Be sure to know what your withdrawal rate is from year to year.

posted in NewslettersPlanning

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

Planning Newsletter – Oct 2015

by Financial Alternatives on 10/21/2015

Smart investors should never let taxes be the primary driver of their investment planning. In past decades, investors lost millions in “tax favored” or “tax advantaged” investments. Even though investors are wise not to let taxes be the primary driver of their investment strategy, they should do everything possible to manage their portfolios in a way that minimizes taxes.

In the newsletter we cover two strategies we employ when managing client portfolios to reduce taxes: Tax loss harvesting, and thoughtful asset location.

posted in NewslettersPlanning

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

Market Review – Q2 2015

by Financial Alternatives on 7/17/2015

  • Emerging markets outperformed both the US and developed ex US markets in US dollars during the quarter.
  • REITs recorded the lowest performance in developed markets, including the US.
  • Commodities were broadly positive during the second quarter.

posted in InvestingNewsletters

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Disclaimer

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