One of the standard portfolios that investors use, with 60 percent stocks and 40 percent bonds, has had a really bad start to the year, with the largest declines in decades. These portfolios were supposed to balance growth and risk, with both allocations growing over time but with each offsetting the other. When stocks were up, bonds would be down, and vice versa. As such, this was the portfolio that would let investors participate in the market’s gains without too much of the downside.
Commonwealth
Monthly Market Risk Update: July 2022
My colleague Sam Millette, manager, fixed income on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Market Risk Update. Thanks for the assist, Sam!
Equity markets experienced widespread sell-offs in June due to rising investor concern about slowing economic growth and persistently high levels of inflation. The S&P 500 lost 8.25 percent during the month, while the Dow Jones Industrial Average lost 6.56 percent. The Nasdaq Composite saw the largest decline, as the technology-heavy index was down 8.65 percent in June. The market turbulence capped off a challenging quarter for equities and served as a reminder that real risks remain for markets that should be acknowledged and monitored.
2022 Midyear Outlook: A New Paradigm for Equity Investors?
After nearly two years of a stock market that seemed to move higher each day, investors are now experiencing a bout of volatility that has not been seen in quite some time. So, will the second half of 2022 bring a return to the lackluster market environment that investors grew accustomed to in 2020–2021 (with the exception of the novel coronavirus sell-off)? Or should we expect elevated volatility to become the norm moving forward?
Monday Update: Hiring Remains Strong in June
There were several important economic data releases last week, with a focus on the minutes from the Fed’s June meeting and the June employment report. The jobs report showed that hiring remained strong in June, which was an encouraging sign for the overall economy and a reminder that the labor market remains healthy. This will be another busy week of updates, with a focus on the June inflation and retail sales reports as well as a look into industrial production and consumer sentiment.
Economic Risk Factor Update: July 2022
My colleague Sam Millette, manager, fixed income on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam!
Looking Back at the Markets in Q2 and Ahead to Q3 2022
June was a terrible month for the markets, capping off a disappointing second quarter. The S&P 500 lost 8.25 percent during the month and 16.1 percent for the quarter; the Dow Jones Industrial Average lost 6.56 percent during the month and ended the quarter down 10.78 percent; and the Nasdaq Composite lost 8.65 percent in June and 22.28 percent for the quarter. The Nasdaq Composite also saw the largest monthly and quarterly declines due to its heavier weighting on beaten-down technology stocks.