As the stock markets take another leg down today, key U.S. interest rates are rising again. Like a 13-month round-trip higher and lower, the S&P 500 stock index is back at the levels of early April 2021. Meanwhile, interest rates have only taken a one-way trip higher. The benchmark U.S. 10-year Treasury yield was 3.08% at noon.
 
In my opinion, this is the most difficult environment for investors since early 2020. Instead of a focused concern like the announcement and spread of the Covid pandemic, which produced a quick although severe dip in the stock market, today’s environment seems to be driven by many slower-moving concerns. I believe this environment is giving investors more time to worry than we had in February and March 2020.
 
The combination of high rates and a potential recession amidst high inflation is haunting investors. Also, of course, investors are still grappling with the increased geopolitical uncertainty since February. All of this makes it behaviorally difficult to stay true to a long-range investment strategy.
 
Let us know how we can help. These are opportune times to review and discuss things if you feel anxious about your portfolio. Perhaps an update to your portfolio is justified. On the other hand, doing nothing and sitting tight may feel awkward, but it might be best if your investment time horizon remains long.
May 9, 2022

Market Update | May 9, 2020

As the stock markets take another leg down today, key U.S. interest rates are rising again. Like a 13-month round-trip higher and lower, the S&P 500 […]
April 25, 2022

Market Update | April 25, 2022

After moving sideways and essentially directionless over the prior three weeks, the U.S. stock market took a tumble on Friday. Losing 981 points, or 2.8%, the […]
April 11, 2022

Market Update | April 11, 2022

Interest rates continue to steadily advance. The benchmark 10-year U.S. Treasury yield was at 2.75% this morning. Pushing interest rates higher are concerns that rising inflation […]
March 28, 2022

Market Update | March 28, 2022

The Russia-Ukraine conflict remains the world’s top concern – and rightly so. We feel that society should never accept war as suitable or get used to […]
March 7, 2022

Market Update | March 7, 2022

The Russia-Ukraine war is tragic and saddening. Our team is watching the developments closely. We’re hoping for a quick resolution for humanity’s sake. We’re also monitoring […]
February 21, 2022

Market Update | February 21, 2022

Geopolitical developments can drive anxiety in the financial markets. The buildup of tension between Russia and Ukraine is a textbook example of this. Investors around the […]
February 17, 2022

Inflation Found in a Coat Pocket

Many of us dusted off our thicker winter jackets recently. Did you find a dollar bill tucked away in a coat pocket? Maybe it doesn’t happen […]
February 7, 2022

Market Update | February 7, 2022

The broad U.S. stock markets are modestly higher than the last time we published a Market Update two weeks ago. Meanwhile, bond yields have advanced higher […]
January 24, 2022

Market Update | January 24, 2022

We’re less than one month into 2022, and the year has already provided an interesting ride in the stock markets. Moderate volatility is reappearing. The resulting […]
January 13, 2022

Market Update | January 13, 2022

The S&P 500 stock index returned 28.7%, counting reinvested dividends, last year. It was the seventh-highest gain in the past half-century, according to S&P Dow Jones […]
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