With many people on the road to visit family or preparing to host, we thought we would do a simple blog today on markets to be thankful for. We put a little wrinkle in it, though, by looking at how far different indexes are from their high and their low dating back to the start …

Forward earnings growth forecasts are a lagging indicator for markets. Truth be told, most data when reported is largely a lagging indicator for markets, since markets tend to be forward looking. Markets tend to respond to a combination of long-term fundamentals, which drive baseline expectations, surprises and shocks, and sentiment. However, it’s still very important …

The sell-off in bonds from August 6, 2020 to October 24, 2022 was dramatic and difficult. The Bloomberg US Aggregate Bond Index (“Agg”) is actually up 3.6% off of the October 2022 lows despite additional volatility this year. We are often asked when it’s safe to add bond duration (the sensitivity of a bond or …

2023 was a year many economists and economic models called for a recession only to see accelerating growth; a year when soft data surveys and hard data economic “facts” diverged, with hard data presenting a better picture; and a year when inflation fears remained elevated even as inflation fell. We do not want to minimize …

As bond yields have risen, stock valuations have grown more expensive relative to bonds. We do believe this reduces the equity risk premium, but it doesn’t erase it. Expected earnings growth rates remain largely consistent with history, providing a solid fundamental basis for stock gains if realized. Overall, we still expect stocks to earn a …

We have received several questions about the potential market impact of Hamas’ brutal terrorist attack on Israel, the Israeli response, and the on-going aftermath. Thinking about these kinds of issues is our job, but we are also well aware that these considerations are trivial compared to the events themselves and the lives they impact. Looking …

Another quarter in the books, another quarter of losses for bonds. The Bloomberg US Aggregate Bond Index (“Agg”) fell 3.23%, which is the eighth worst quarter on record dating back to index inception in 1976. The index has now declined six of the last eight quarters with the two-year return -7.3% annualized. To be fair, …

The Fed’s policy arm, the Federal Open Market Committee (FOMC), meets on Tuesday and Wednesday and is widely expected to keep the fed funds target range unchanged at 5.25 – 5.50%. Since March, 2022 the Fed has raised rates at every meeting except the meeting before last in June. With the Fed raising rates as …