Why Investors Need Perspective Around the Magnificent 7 and Valuations→

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The stock market continues to reach new heights, driven by a stronger-than-expected economy and the largest technology stocks. In particular, Nvidia, a maker of graphics chips used in artificial intelligence applications, recently helped to push markets higher after it beat Wall Street earnings expectations. This has added to the gains made by the group known as the Magnificent Seven which consists of fast-growing technology companies, many of which have market capitalizations of a trillion dollars or more. In this environment, some investors may be nervous that the market has risen so far, so fast.

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Why Investors Need Perspective on the Soft Landing Debate→

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The S&P 500 and Nasdaq fell 1.5% and 3.2%, respectively, driven by a decline in large cap tech stocks, while the 10-year Treasury yield climbed to 4.05%. Market-based measures still suggest that the Fed could cut rates by 25 basis points five or six times this year, beginning in May and possibly as early as March. So, while investors might prefer to start the year off on a positive note, it's important to not overreact to a single week of activity, especially in the context of the strong trends of the past twelve months. What should investors consider today to maintain a longer-term perspective on markets and the economy?

How Middle East Conflicts Have Historically Impacted Markets→

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On the morning of Saturday, October 7, Hamas launched a surprise attack on Israel killing hundreds and plunging the region into further conflict. Israel immediately declared war on Hamas, responded with air strikes, and called up 300,000 army reservists. The U.S. and many U.N. Security Council members have condemned the attacks by Hamas, which is designated a terrorist organization by many major countries, and are providing assistance to Israel including the positioning of a U.S. aircraft carrier in the Eastern Mediterranean. The situation is evolving and we all hope for a return to stability in the region, and especially for the continued safety of civilians and any friends and family that might be impacted.

5 Insights for Long-Term Investors in Q4 2023→

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As the final quarter of the year begins, markets are grappling with rising interest rates and continued economic uncertainty. These factors led the S&P 500 to decline 3.3% (with reinvested dividends) during the third quarter while the U.S. Aggregate bond index lost 3.2%. On the surface, these issues echo the many concerns that investors faced last year when inflation and higher rates resulted in a bear market. Other factors including the narrowly averted government shutdown and cracks in China's economy have also added to investor fears. Amid the seemingly constant stream of negative headlines, how can long-term investors stay positive as they prepare for the final months of the year?

What the Fed's Latest Projections Mean for Long-Term Investors→

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At its September meeting, the Federal Open Markets Committee kept rates unchanged with a target range of 5.25% to 5.50%, in a decision that was widely anticipated by investors. Still, markets responded negatively with bond yields jumping to levels not seen since 2007, the S&P 500 falling a couple percentage points, and tech stocks retreating further from their recent peaks. This reaction may come as no surprise to investors since disagreements around the direction of the economy and Fed policy have driven market swings all year. In addition, issues such as a possible government shutdown, cracks in China's economy, student loan payments, higher oil prices, and more, are worrying investors. As we approach the final quarter of the year, how can investors maintain perspective on the state of the economy and its impact on markets?

How Stock Market Sectors Depend on the Business Cycle→

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For patient investors with time horizons of years and decades, the primary drivers of portfolio returns are not day-to-day market fluctuations but the business cycle and other longer-term trends. One reason that questions around inflation, the Fed, and geopolitics have resulted in market swings is that they shed light on where we might be in the cycle. Additionally, the business cycle impacts not only the broader stock market and interest rates, but individual sectors as well. What can long-term investors do to maintain perspective and stay on track to achieving their investment objectives?