One of the most surprising things to come out of the first half of 2022 was the walloping fixed income investors received from bonds. The Bloomberg U.S. Aggregate Bond Index posted its worst 12-month return in its entire history, which caused many investors to shed exposures, particularly longer-term sectors.
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Economic Release Snapshot: Inflation Accelerated in June
Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead.
Consumer Confidence Vs. Consumer Sentiment
One of the questions I have been getting recently is about consumer confidence. Some headlines are saying it is at all-time lows, while others (including me) are saying it isn’t bad at all. Since how people feel obviously affects how much they spend and, therefore, the economy, this is a big and meaningful difference. So, what is going on?
Is the 60/40 Portfolio Dead?
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.
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?
Director of Operations
Ashley has been working in the customer service field since she started her first job at age 16. For the past ten years she worked in an office setting handling accounts payable and receivable as well as some receptionist work. She is very excited to learn more about the investment field.
Alec joined Riverstone after starting out his post college career on the operations side of an international logistics company working as an account executive. Graduating with a BA in Economics from the University of Illinois at Urbana-Champaign, he quickly developed a strong interest in the financial world. A lifetime resident of the Chicagoland area, Alec is an avid fan of his hometown sports teams. He is also an enthusiast of outdoor activities like fishing, camping, and hiking whenever possible.
Carol has a wide variety of experiences and has worked mainly with not-for-profit organizations. She spent 20 years in fundraising and 15 years teaching in the Illinois school system while she raised her younger children. Carol lives in Sugar Grove with her husband, Ron, and their Golden Retriever, Charley. She has four children and two grandchildren. When she’s not working, Carol enjoys spending time with friends and family, running, fishing, bible study, and watching her grandchildren play sports.
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Wealth Advisor / Registered Principal
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Wealth Advisor / Registered Principal
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