As stated in our recent Q4 2017 quarterly newsletter and client education presentation, the calm, steadily rising equity market that had been in place since February 2016 was not normal. We did not know when a pullback would come, but we viewed its coming as inevitable. Today’s declines in the Dow and S&P 500 were dramatic, but they were certainly not unprecedented in the context of financial markets history. In fact, since 1937, the S&P 500 Total Return Index has…

The fourth quarter of 2017 capped a very strong year for US equity returns. Incredibly, the largest peak-to-trough move in the S&P 500 was just 2.8%, making 2017 one of the least volatile years ever. Since 1937, the S&P 500 Total Return Index has averaged more than one 5.0%+ pullback per year off unique 52-week highs, so the lack of any significant market decline since February 2016 is not normal. While we remain cautiously optimistic, we want to remind our…

The fourth quarter of 2016 capped the end to a solid year for US equity returns. The quarter started off rocky with the S&P 500 Index falling each day from October 25 to November 4, the most consecutive losing sessions since 1980 as election uncertainty ran high. The market then rallied strongly into year-end on the back of strong economic data and optimism regarding the upcoming Republican administration. As we look into 2017, these are a few key topics and…

Yesterday, citizens of the United States unexpectedly voted for Donald Trump as our next President, and also left Republican majorities in both the Senate and House of Representatives. Markets around the world initially reacted very negatively last night with S&P 500 futures down as much as 5.7%. Losses have since moderated or even been erased following Trump’s gracious victory speech and Clinton’s concession, avoiding a contested election. Trump has been viewed negatively by the stock market in the past because…