We hope you enjoyed a nice holiday season and are entering 2023 in good health and spirits, optimistic for what the year ahead might bring.  For many investors that may feel difficult given the stormy market environment; yet we should each resolve not to give way to unreasonable pessimism either.   This quarter we offer several items in our newsletter:

• “Dog Gone ’22!” – some of the most friendly words we could come up with to convey the frustration that most probably feel for the investing experience over the last year, but more importantly a quick review of the factors that influenced both the stock and bond market.
• “Snoozer Cruiser – Dreams for ’23”  and “Portfolio Tactics” – We share the key items we are watching; what they might mean for investors in the year ahead; and how we are strategically positioning portfolios.
• “The Upside to Rate Hikes & Secure Act 2.0” – The Fed’s aggressive rate increases last year are not all bad… we share some ideas for how(where) you can get paid significantly more on your cash.  Also, some quick highlights about the just passed Secure Act and how it may impact you.

Click here for the Printer-friendly PDF version including benchmarking and fund data   

We hope these updates are helpful and encourage you to review.  Please do not hesitate to call or email with questions, or to coordinate a time to visit together.

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We hope this note finds you and your family well and enjoying the beginning of Fall.  Unfortunately, “enjoyable” is not a word we’d presently associate with the financial markets.  The 3Q marked the first time since 1976 where both stocks and bonds were simultaneously negative 3 quarters in a row.  As we interact with clients, some jokingly request that we not send this quarter’s update as they are doing their best to not focus closely.  That may not be the worst strategy!

Our newsletter this quarter includes the following brief perspectives:

• “A Fresh Pair of Eyes” – 2022 remains all about rates (interest & inflation), and the dynamics are very different than when the year began.
• “Always Late” – What’s it like to always be late?  Maybe we should ask the Fed.  Recognizing that monetary policy always acts with a lag, it is understandable the market is concerned by the aggressive changes pursued over the last 9 months.  Will the Fed go too far before we see the impact of their actions?
• “The Times They Are a Changing” – What’s the market saying about the future; what can help the markets stabilize and ultimately turn the negative trend around?
• “Buckets of Time – Dead, or Alive?” – With bonds experiencing their worst stretch in over 40 years, some may be wondering if the “buckets of time” approach remains appropriate in today’s environment.

The printer-friendly version of the newsletter, including benchmarking and widely held fund performance data, can be obtained here: printer-friendly PDF version.

With so many issues affecting the current investment climate, we hope that these updates are helpful.  Please do not hesitate to call, email with questions, or to coordinate a time to visit together.

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We hope you are enjoying summer and sunshine.  Unfortunately, the financial markets remain stuck in a “storm”.  After the difficult first quarter, pain accelerated during the 2Q.  There was no place to hide; bonds and stocks together experienced a 2nd consecutive negative quarter each – a somewhat rare occasion.

Against this backdrop and with so many big worries without easy or quick resolution (inflation, Russia/Ukraine, Fed that is intentionally trying to slow the economy to balance supply & demand), it can become challenging to maintain a longer-term perspective.  Our newsletter this quarter provides the following context:

• “GIGO” – Do your best to control the type of information you consume, as well as how you react to it.  What version of “GIGO” will you be?
• “The World Changed” – A review of market action so far in 2022 and context from history providing clues to what might be expected from here.
• “Bills to Pay” – The “cost” of fiscal and monetary stimulus pursued by governments around the globe in response to the Great Lockdown is being paid in 2022.  How is the bill being paid and how long will that last?
• “iPod, iPhone, iPad… now the I Bond” – What are I Bonds, and are they for me?

A printer-friendly version of the newsletter, including benchmarking and fund performance data, can be obtained here: Q2 Nvest Nsights.

We realize how troubling is the current market environment and are here for you.  We continue to monitor the backdrop, and be intentional about managing portfolios tactically.  Please do not hesitate to call, email with questions, or to coordinate a time to visit together.

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After nearly two years of strong market gains, investors experienced their first meaningful pullback during the first quarter of 2022.  While it is typical for markets to experience pullbacks and a higher level of volatility after the initial 12-18 months of a new bull market, it is never welcomed or comfortable.  That is probably because the uncertainties that usually accompany them are always unique.  Present uncertainties include a still fractured global supply chain, a Federal Reserve that finds itself needing to raise interest rates and tighten monetary policy in pursuit of arresting inflation that is running at the hottest pace in 40 years; and of course Russia/Ukraine which muddies both challenges further.

This quarter our Nvest Nsights newsletter shares what we’re watching and perspective to the topics/questions we’re most frequently hearing from clients.  Perhaps it “Goes Without Saying” that the backdrop highlighted above implies 2022 will likely remain a challenging year; but there are also some important messages to be heeded from history.  There is also the saying that “A stitch in time saves nine”;  while ‘main street’ consumers may not welcome rising interest rates and the impact on the cost of borrowing (or the markets in the short term) it is nonetheless appropriate for the longer-term health of the economy.  The markets are adjusting to a changing investment landscape.  We close the update with our personal finance theme article with a change coming to employer 401k statements this year.  Will the new “Lifetime Income Estimates“ being provided help you feel more secure?

A printer-friendly version of the full quarterly newsletter, including benchmarking and fund performance data, can be obtained here: Q1 Nvest Nsights

As always, please do not hesitate to let us know if you have any questions or would like to coordinate a time to visit.

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Happy New Year!  2021 provided a second, actually a third, consecutive year of double-digit investment returns for stocks (most forget 2019 because of how quickly the mood soured in early 2020).

This edition of our quarterly newsletter, Nvest Nsignts provides “the lowdown” on what themes drove the financial markets during 2021.  Perhaps of greater interest is our sharing of what we believe will be the biggest focus for investors as we “Journey into 2022“.  Our personal finance focus this quarter, “Healthy Habits” shares several easy-to-implement “resolutions” that can pack a powerful punch to enhance your long-term financial posture as you set plans for the New Year.

A printer-friendly version of the full quarterly newsletter, including benchmarking and fund performance data, can be obtained here: Q4 Nvest Nsights

As always, please do not hesitate to let us know if you have any questions or would like to coordinate a time to visit.Continue reading→

With the 3Q now complete but the stock market seemingly more choppy since September, investors wonder if the final 3 months of the year and 2022 might offer a resumption of upward trend.  For most, it’s a difficult consideration amid the confluence of BIG Government-related issues ranging from significant spending and tax proposals (infrastructure and social programs), a potential government shutdown (debt ceiling), whether Fed Chair Powell will be reappointed, and more.

In this quarter’s update, “All of the Above” we review the reasons we see for the stock market losing momentum in recent months, September in particular.  We also believe that the Great Lockdown response to COVID will be viewed as a “Pivot Point” in a variety of ways, but including how investors think about inflation, interest rates, and asset allocation.  Related, September 30 marked the 40th anniversary of a secular bull market for bonds.  What might the next 40 look like?

The personal finance discussion this quarter provides a quick summary of what we see are the most likely tax changes coming as a result of current proposals.  As you might imagine, this is a topic arising in most every client conversation this year and we hope you find the quick bullet format helpful.

A printer-friendly version of the full quarterly newsletter, including benchmarking and fund performance data, can be obtained here: Q3 Nvest Nsights

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On June 30, the S&P500 enjoyed its 34th new closing high of the year, and is now up roughly 95% from its March 2020 low.  Remarkable!  Our first article, “Ruff & Reddy” reviews the catalysts behind this powerful advance, but also that under the surface there is rotation underway and broader market momentum is softening.  This is normal in the second year of a new bull market and is often accompanied by more volatility.  Government remains a key factor for the prospect of volatility as well.  In that regard, the lyrics of the 1976 Eagles song “Hotel California” may be a good summary of the challenge government may face when they at some point attempt to walk-back from deficit spending or target inflation.  In a different way, the song’s lyrics may be spun toward appropriate guidance for individual investors too.

The personal finance article this quarter, “Is Your Beachbody Ready for Summer?“, shares a client’s motivation to participate in a recent stock IPO.  We are often asked by clients about various investment ideas – ranging from ‘meme-stocks’, bitcoin, or real estate; this client’s thoughtful approach to an investment receiving lots of buzz provided a refreshing and textbook example of how to avoid potentially unhealthy financial behavior.

A printer-friendly version of our quarterly newsletter can be obtained here: Q2 Nvest Nsights

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