WHAT'S NEW? Our Latest Updates!

June 2023 Performance Review

Considering our heavy exposure to value stocks and bonds, we're surprised to be at least in the ballpark of the Vanguard benchmark total global portfolio fund. This is despite the tech and large-cap growth market quickly outpacing us.

May 2023 Performance Review

The economy remains surprisingly buoyant, despite the Federal Reserve's relentless rate increases to temper persistent, high inflation. Given that we're still in a real estate bubble, built upon a foundation of low rates and lax Covid-related fiscal and monetary policy, this is quite a remarkable feat. 

April 2023 Performance Review

This year has been marked by turbulence in the banking sector. The total assets of failed banks already exceed the inflation-adjusted assets of the banks that failed in 2008 during the financial crisis. These stark figures suggest we are likely to surpass the total assets of all the banks that collapsed during the 2008 crisis, which saw elevated failures through 2012 due to massive losses from aggressive real estate lending during a substantial housing bubble.

March 2023 Performance Review

Despite the recent stress in the regional banking industry, both the stock and bond markets performed well last month. As a result of the situation, hundreds of billions of dollars left banks and flowed into money market funds that invest in Treasury bills, which now offer close to a 5% yield.

February 2023 Performance Review

The strong recovery in bonds and stocks from the lows of 2022 that continued into January came to an abrupt halt in February. Bonds are now essentially flat for the year while the stock market gains, which almost broke 10%, have been cut in half.

January 2023 Performance Review

Stocks and bonds rebounded sharply in January as investors upped bets on a so-called soft landing in the economy. Expectations of falling inflation without a serious recession led to a flurry of dip buying, notably in the hardest-hit areas of last year. Falling longer-term interest rates pushed up bond prices but imply low inflation and probably a recession are in the cards. Economic numbers are by and large very good, considering how fast interest rates have risen, but then it takes time for rate increases to help start a recession, historically.

December 2022 Performance Review

2022 was one of the worst calendar years for the stock market. The 18.15% drop in the S&P 500 (including dividends and index fund fees) was the seventh worst annual hit since the 1920s. This in itself is not that remarkable. The interesting part was that the bond market was also down 13.25% – essentially the worst year in history for the bond market.

November 2022 Performance Review

November was a great month for pretty much anything that was down over 20% over the last year or so. This current stock market rebound started in late September and has boosted the S&P by over 10% from the lows of the year, and by even more for harder hit markets.

October 2022 Performance Review

The US stock market rebounded strongly in October, rising over 8%. It was an even better month for value-oriented stocks and energy stocks, which helped push the Dow up 14%, its best month since the 1970s.

September 2022 Performance Review

The hits to the bond market just keep on coming. Interest rates spiked up as inflation signs were alive and well, and the Fed hiked short-term rates by another 0.75%.