2016 was a rollercoaster ride for equity investors. Despite the volatility, and a few white knuckle moments, last year ended up being an excellent one for investors who maintained a long-term perspective. Not only did the S&P 500 recover from the worst start in U.S. stock market history, but CCM clients also captured additional returns from the outperformance of small company stocks and value stocks. In this recommended reading article, Paul Merriman recaps that outperformance and highlights ... [Continue Reading]
Articles and resources related to Economy.
As the new year begins, one of the most common questions I’m asked in my role at the firm is, “What do you think about 2016? Was it a good year?” In this context, the question typically refers to the year from an investing perspective. However, assigning a letter grade or a broad ranking to the span of a year doesn’t necessarily align with the depth of our experience and how the world’s events impact our lives. Categorizing a year as exclusively good or bad can overlook the complexity of events ... [Continue Reading]
“When markets hit new highs, is that an indication that it’s time for investors to cash out?” This is the question asked by the research team at Dimensional in their new white paper "New Market Highs and Positive Expected Returns." With new all-time market highs being reached earlier this month, and the psychological watermark of 20,000 on the Dow Jones industrial average close to being broken, it seems perfectly logical to wonder if future returns might be lower or if a correction should be ... [Continue Reading]
While, as we write, broad equity markets are performing significantly better than futures markets had indicated they would last night, we still wanted to reach out regarding yesterday's election results and the related short-term market impact. Certainly the impact of the election carries with it a vast array of implications for the U.S. and the world. We want to be very cognizant in recognizing that and pointing out that our focus today for this message, and our activities today at CCM, are ... [Continue Reading]
Global Gross Domestic Product (GDP) growth has stagnated since the financial crisis in 2008, and here in the U.S. this economic recovery has been the slowest since World War II. GDP growth in the United States has averaged just 2.1% since the beginning of 2009, well below the 3.2% average over the past 70 years. Potential reasons for this slow growth are numerous; debt deleveraging, low capital spending by corporations, central bank market manipulation, etc. While the list of potential reasons ... [Continue Reading]