A blog for everyday financial tips, Trajan news updates, and more
The markets were mixed as we entered the New Year in January, with stocks and bonds posting diverging returns for the month. We are taking a more sober outlook for consumer spending, business investment and thus, business earnings.
In January, many experts release market predictions, although their accuracy is often questionable. However, we do not engage in making predictions. Instead, our approach involves estimating the risk premium that we anticipate earning if the assets are held over the course of a market cycle.
Markets continued to rise in December with the anticipation of lower interest rates. Major equity indexes saw annual returns ranging from about 16.2% to 44.1%. The S&P 500 had a total return of over 26% in 2023, higher than the 50-year average of 11.2%. Will these trends continue in 2024?
The markets took off in November, fueled in part by a drop in intermediate/long term bond yields that served as “rocket fuel.” The trigger? Good news on the inflation front.
Our nation’s propensity to spend more than we receive from tax revenues is nothing new. But its effects are becoming more apparent – including how expensive it is to borrow and the outlook for future equity and bond returns.
Bonds. Treasury Bonds. Read why you should be stirred, not shaken, to update a portfolio mix with some longer-duration bonds right now.
The September effect lived up to its reputation again. The markets saw negative monthly returns, but we’re cautiously optimistic this fall. Tapering interest rates are on the horizon.
While investors grapple with geopolitical uncertainties, gold investments become a shiny alternative (again). Take a breather and read a quick review of the positive and negative factors aspects of this past quarter.
This August’s markets had some sobering reminders for investors. One of the most important? Given the size of the Chinese economy, further weakness could spill over to the world markets – adding to already slowing growth.
Experts believe that the Federal Funds Rate has hit its peak and interest rates may be lowered in the next year to benefit the struggling market. However, ongoing efforts to combat inflation may require further action from the Federal Reserve.
