TRIVIA TIME: how many stocks make up the Wilshire 5000 Total Market Index (a widely used benchmark for the U.S. equity market)? While the logical guess might be 5,000, the reality is that as of December 31, 2016, the index actually included around 3,600 companies. In fact, the last time this index contained 5,000 or more companies was at the end of 2005.1 Surprisingly to most, this reduction in investable companies is nothing new. Over the past two decades, there has been a steep decline in ... [Continue Reading]
Updates and articles on timely topics from the Investment Team.
Throughout the years we’ve come to appreciate the different perspectives held by firms and service providers within the financial services industry that vary from ours at CCM. We believe that varying viewpoints lead to meaningful conversations that ultimately produce better advice, products and service for our clients. This point is timely this week, as a recent Wall Street Journal story, “DFA Funds Are Booming, but That Adviser Fee Matters,” rightly highlighted the benchmark beating performance ... [Continue Reading]
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]
As election results started to pour in on Tuesday night, the surprise outcome of a Donald Trump victory rippled throughout international markets. U.S. stock futures fell more than 5% as the uncertainty of what was happening led to a risk-off trading environment. By noon on Wednesday, not only had markets completely recovered from those losses, but they were well on their way to strong gains. While there are many uncertainties about our future, and questions to be answered regarding what type ... [Continue Reading]