Since early 2012 our views for the equity market and US economy have been largely positive. Our economic outlook has consistently been that while the recovery has been underwhelming, it has been “good enough”. We have highlighted that the Fed has been our friend with a very accommodative monetary policy. Additionally, after the bear market [...]
Given the latest pullback in the market, we wanted to remind investors the importance of staying the course. The S&P 500 has declined about 11% from its closing high earlier this year. Is this abnormal? Should you be concerned? Should you do something different? Capital Research & Management Co. analyzed the U.S. stock market for [...]
Overview At the start of the third quarter the exceptionally low volatility we had experienced all year continued. By mid August we had set a historical record for low volatility going back to 1929. To this point in the year, the range between the highs and lows was as narrow as it had ever been! [...]
Overview The story of 2Q is low volatility. The market has stayed locked in a historically narrow range with little direction to speak of. The market is at new highs, and there are at least a few signs of secular excess in some indicators that are of concern. The lack of volatility and overbought nature [...]
1Q Wrap-Up In our 2014 year end review, our view for 2015 was that it would probably be a decent year with average returns bit increased volatility, so far this seems to be as predicted. The S&P 500 was up + 1.0% YTD but the up and down volatility has been higher than normal. The [...]