It’s Always a Good Time to Talk About Risk and Volatility

In the 68 trading days in the U.S. stock market from 11/11/16 to 2/17/17, the Dow Jones Industrial Average (DJIA) set new all-time high records on 26 of those days. In the last seven consecutive days over the same period, the Dow closed at a new record every day. Continue reading

Why Uncertainty Might Just Be an Investor’s Best Friend

This blog is from the March issue of Portfolio Perspectives.
With many stock market indices at all-time highs, Washington awash in political turmoil and unsettling news around the globe, many investors may be unsure what to do next.
And we believe that is a good thing.
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The Folly of Chasing Dividend Yield

OasisThis blog is from the February issue of Portfolio Perspectives.
Since the “great recession,” interest rates have been considered low by historical standards, and it’s not just a recent phenomenon. Real interest rates and inflation have been in decline since the 1980s. While this trend has been a potential boon to borrowers, it’s been a source of irritation to savers and retirees trying to live on the income from their investment portfolios.
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Q4 2016 Investment Committee Briefing

blog_investment_committeeWithout question the biggest story of the fourth quarter, in fact all of 2016, was the U.S. presidential election. Regardless of your political leaning, it is a fair bet that market performance during and after the election qualifies as what market analysts like to call “an unanticipated event.” In this fourth quarter briefing we will briefly examine how the presidential election seemed to reverse a slight decline of recent highs for the stock market (and also to accelerate declines in the bond market). Then, using events in this most recent quarter as a backdrop, we will take a much broader historical look at whether market reversals are predictable in and of themselves. Continue reading

The Dow Jones Hit 20,000…Does it Really Matter?

I well remember when the Dow Jones industrial average reached 10,000 in 1999, as I was working at Dow Jones Indexes at the time. It had been more than 100 years since Charles Dow created his venerable stock “average” and we were approaching a historic milestone. The exuberant 90s were in full swing and the stock market had more than doubled the prior four years. Continue reading