The upcoming U.S. election is proving to be one of the most highly contested and polarizing in recent history. With control of the presidency, house, and senate on the line, in addition to a multitude of key state and local races occurring across the country, the stakes are clearly high. Adding further complexity and complication to the mix, we continue to navigate the challenges of a global pandemic, where the health and safety of the electorate are at risk. It may come as no surprise that ... [Continue Reading]
Updates and articles on timely topics from the Investment Team.
For investors who recall the experience of 1999, it was either a fantastic year or a difficult one, depending on the types of stocks in their portfolio. Investors who concentrated their portfolio among growth companies, which earned little or no profits, remember 1999 as a fantastic year, delivering a return of 41%. Investors with the opposite philosophy, such as Warren Buffett, chairman of Berkshire Hathaway, did not fare as well. Their focus on value companies with large profits lost ... [Continue Reading]
As the chart below shows, 2020’s second-quarter rise in equity market performance was as dramatic as the previous quarter’s decline. With plenty of bumps along the way, the S&P 500 is now up more than 40% from the bottom on March 23. 1 If we view these recent extreme market events as isolated time periods, we can see the sharp contrast between the first two quarters of 2020 (Chart 1, below). These quarters were truly “tail events.” Q1 produced the fifth worst return, and Q2 ... [Continue Reading]
The events of the past quarter hold no superlative or adjective strong enough to capture the disruption and change that many are experiencing. What would have been hyperbole just days or weeks earlier, was quickly becoming our reality. During the past two months, we’ve been introduced to many new terms and experiences like social distancing, sheltering-in-place, and virtual hang outs with friends and family. What was once saved for extreme snow days in Minnesota, distance learning, is now just ... [Continue Reading]
For many pundits, year-end market reflections are an opportunity to rewrite the past. It’s not uncommon for revisionist versions of previously made comments to emerge. It’s freeing and liberating to not live in that world. Accepting that we cannot predict the future and that hindsight is no replacement for foresight when it comes to building an integrated and customized financial plan is what truly leads one down a successful path. If you recall where global markets were in late December ... [Continue Reading]