Next Thursday, June 23rd, the people of Great Britain will vote on whether their country should remain a part of the European Union (EU). This is being referred to in the media as ‘Brexit.' As we move closer and closer to voting day, the polls are getting tighter and it appears there is a real possibility that the citizens of the UK may vote to leave the union. The ramifications of this vote will impact markets worldwide and will make a significant statement regarding the long-term viability of ... [Continue Reading]
Articles and resources related to Portfolio Management.
On the topic of interest rates, the commonly held view is that we have nowhere to go but up. That line of thinking leads many people to believe that bonds will only lose money in the future and that they have no place in a diversified portfolio anymore. However, if the last several years have taught us anything, it’s that interest rates can indeed go lower from here. Just two years ago we would have scoffed at the idea of negative interest rates, yet nearly 30% of worldwide government bonds now ... [Continue Reading]
If you’ve read more than a few of our investment updates or insights over the years, you know that focusing on the long-term is essential to CCM’s investment philosophy. A myopic view of markets and returns may lead to adverse consequences for an investor’s financial well-being. More often than not, this is due to an overly strong reaction to recently occurring events (that quickly reverse) or from stumbling onto what may be perceived as an easily identifiable pattern in market data. This leads ... [Continue Reading]
For our Investment Insight this quarter, the chart featured below presents the opportunity to consider the concepts of average market returns, after-tax real returns, and needed returns, while reminding ourselves of what might otherwise seem counter-intuitive.What may be counter-intuitive to us as investors is that annual returns are almost never average. Coming out of 2015—a year in which three of four quarters were significantly positive—demonstrates how the experience we “felt” the majority ... [Continue Reading]
Even though today’s market is rebounding significantly as I write, it is still important for us to address the topic of all of the recent volatility. For global stock market investors, the news so far in 2016 has been marked by negative returns. As even the most successful investors realize, negative stock market returns are to be expected from time to time—as often as three years out of every ten. For the US stock market, as measured by the price of the S&P 500, 2015 was the first ... [Continue Reading]