Financial Alternatives News and Insights

• In only six out of 97 years from 1926 to 2022 did the market have an annual return that came within two percentage points of the market’s long-term average returns of 10%.

• It’s extremely important for investors to understand market volatility so they do not get too excited about a “good year” and too worried by a “bad year”.

• The allure of trying to be in the market when it’s rising - and out of the market when its falling - is completely understandable. But timing decisions can often result in lower returns and increased stress.

• The US equity market posted positive returns for the quarter and outperformed both non-US developed and emerging markets.

• US real estate investment trusts outperformed non-US REITs during the quarter.

• US government debt reached 121% of the value of the country’s gross domestic product (GDP) last year. Many investors have expressed concern over the impact that servicing this level of debt could have on the stock market. But the historical data show little relation between the two.

• The US equity market posted negative returns for the quarter and outperformed non-US developed markets, but underperformed emerging markets

• Interest rates increased across all bond maturities in the US Treasury market for the quarter

• Emerging markets posted negative returns for the quarter and outperformed both US and non-US developed markets.

• In the past century, there have been 15 recessions in the US. In 11 of those instances, stock returns were positive two years after the recession began.

• Stock markets typically drop well before a recession is officially announced and then rebound before the recession is officially over.

• Commit to holding onto your portfolio’s stock allocation for the long term and rebalancing it if markets drop due to a recession or any other event that may trigger a bear market

• The US equity market posted positive returns for the quarter and outperformed both non-US developed and emerging markets.

• US real estate investment trusts outperformed non-US REITs during the quarter.

• The Bloomberg Commodity Total Return Index returned -2.56% for the second quarter of 2023.

• The US equity market posted positive returns for the quarter and underperformed non-US developed markets, but outperformed emerging markets.

• REIT indices underperformed equity market indices.

• Across equities, Value and Small caps underperformed Growth and large caps.

• The US equity market posted positive returns for the quarter and underperformed both non-US developed and emerging markets

• Emerging markets posted positive returns for the quarter and outperformed the US market, but underperformed non-US developed markets.

• The Bloomberg Commodity Total Return Index returned +2.22% for the fourth quarter of 2022.

2022 was the seventh worst calendar year loss for the S&P 500 Index since the 1920s, down -18.1%.

• The 13% drop in the Aggregate Bond Index for the year was over 10% greater than any other annual drop in this index’s history!

• Since 1928, the S&P 500 Index has experienced two or more consecutive negative years just eight times.

• The US equity market posted negative returns for the quarter and outperformed both non-US developed and emerging markets.

• The Bloomberg Commodity Total Return Index returned -4.11% for the third quarter of 2022.

• US real estate investment trusts outperformed non-US REITs during the quarter.

• “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch

• Make sure you have enough cash and other conservative investments so you will never have to sell stocks in a bear market even a prolonged bear market.

• Expect stock markets to fall further after you rebalance, in other words mentally prepare for this so you will not be overly bothered by it.

• US mortgage rates hit 5% for first time since 2011.

• The US equity market posted negative returns for the quarter and underperformed both non-US developed and emerging markets.

• The Bloomberg Commodity Index Total Return returned -5.66% for the second quarter of 2022.

• While volatile periods like the one we’re experiencing now can be intense, investors who learn to embrace uncertainty may often triumph in the long run.

• Emerging markets posted negative returns for the quarter, underperforming the US and non-US developed equity markets.

• The US equity market posted negative returns for the quarter and underperformed non-US developed markets, but outperformed emerging markets.

• The Bloomberg Commodity Index Total Return returned +25.55% for the first quarter of 2022.

• Emerging markets fell 2.5% for the year, underperforming both US and non-US developed equity markets.

• The Bloomberg Commodity Index Total Return returned -1.56% for the fourth quarter of 2021.

• Interest rate movements in the US Treasury fixed income market were mixed during the fourth quarter.