Market Commentary

/Market Commentary

But Not This Year!

How has the market done this year? An easy question one would think. And often, it is quite easy, but not this year. Below is a table of different market indices with performance up to but not including the big dive in the market last Thursday. The second index from the top with the yellow dot to the left is what most people think of as “the market” – it is the S&P 500. [...]

September 28th, 2020|

Is The Market Overvalued?

Is the Stock Market overvalued? We are going to try to answer this age-old question, but before we do, we want to remind you what we think of valuing the markets. Valuation should never be used to judge if the market should be bought or sold. Valuation is a way to measure the potential for future long-term returns, especially when determining if the market is overbought. The economist John Maynard Keynes said, “markets can remain [...]

August 11th, 2020|

Why Has the Market Been So Volatile?

Why did the market go down so much, and why has it rallied so much? The market started the year with upside momentum and the hope that a US China trade deal would help kick start the global economy. The market was up about 10% by February, but the outbreak of Covid-19 quickly derailed the upside momentum and changed the way we look at our world, probably a few times in different directions. From the [...]

June 22nd, 2020|

Why do we write this Market Outlook, and how can you use it?

We want to remind clients why we outline our thoughts on the markets every quarter, and more often when volatility picks up. We believe that following the trends in the market is far more effective than predicting an often-uncertain future. We seldom attempt to “call a high” in the market, as this is usually a fool’s game that causes more harm than good in portfolios. Accordingly, if the market is in an uptrend you [...]

February 13th, 2020|

The Trading Range in the Market Continues. How Long Before the Next Big Move?

Review and Outlook The third quarter ushered in a tremendous amount of volatility as global financial markets reacted as perceptions for whether a trade deal with China was crumbling or not. So far, as we are writing this piece, it has been much ado over nothing as the S&P 500 ended in the black, up +1.9% for the quarter. Returns year to date through the third quarter range from around 10% for International stocks, 13% [...]

October 15th, 2019|