Tag: Investment Planning
Markets in Perspective: Investing at All-Time Highs
The stock market hitting new highs can be a cause for celebration, but it can also trigger anxieties for investors. This common question arises: “Should I wait for a pullback before investing?”
Navigating Prosperity: Four Key Market Areas for Investors to Watch
While inflation holds significant importance within the Fed’s dual mandate, which prioritizes maximum employment and price stability, it does not stand alone in the Fed’s considerations. The Federal Reserve also monitors four other crucial economic sectors that provide valuable insights into the economy’s overall well-being and may impact the timing of monetary policy adjustments.
Timeless Maxims to Guide Your Investments
For the last 30 years, Savant’s investment maxims have served as the bedrock of our investment philosophy. While following them may cause us to sometimes take a seemingly boring path, they remain an important tool to help our clients take advantage of timeless wisdom and avoid needless, speculative risk.
2023: A Year of Recovery for Investors as Stocks and Bonds Bounce Back
Over the past year, we saw markets rebound from a dismal 2022, but many investors still felt like they were falling behind as stock market performance was led by a concentrated group of large companies known as the Magnificent Seven. The temptation to chase the top performers is only natural, but history has shown us time and again that this is not a good idea.
2023 Investment Showdown: Money Markets vs. Stocks and Bonds
As the Federal Reserve raised rates in 2023, money market funds became popular, drawing in $1.1 trillion due to economic uncertainty, bank collapses, inflation, and other factors. Yet, investing in global stocks and bonds likely would have yielded higher returns than money market funds.
2023 Presents: The Magnificent Seven, An Introduction to Top Heavy Markets
As investors look back on 2023, they will likely remember it as a positive year for stocks, with the S&P 500 finishing in positive territory. While this isn’t unusual, the composition of return may be surprising to some.
Illiquidity – A Feature or a Bug?
While liquidity exists on a spectrum and can be viewed through a variety of lenses, in short it simply represents the ability to turn an asset into cash or cash into an asset.
The Fed Ends the Pause and Raises Interest Rates Again
The Federal Open Market Committee concluded its July meeting and announced a 0.25% rate hike. This sets the target for the federal funds rate between 5.25% and 5.50%. The pause we witnessed in June was likely just a brief respite, and the end of it did not come as a surprise to many investors.
Inflation “Protection” Through TIPS and I Bonds
Inflation has left many of us wondering how we can preserve purchasing power in our investment portfolios, particularly in fixed income. Two forms of inflation-protected bonds have been top-of-mind: Treasury Inflation Protected Securities (TIPS) and I Bonds.
Tax-Loss Harvesting: What Is It and How Can It Help You?
Managing your investment portfolio to minimize taxes can be a major part of your retirement and financial planning strategy. Have you heard of “tax-loss harvesting?” The technique can help to maintain tax efficiency over time, especially as markets fluctuate.
Are We There Yet?
The looming recession has been “six months away” for the last 18 months. Yet the data (for the most part) continues to indicate a strong – yet slowing – economy, confounding many who expected the aggressive rate hiking cycle to break the economy and lead to a significant spike in unemployment.
Inflation, Interest Rates, and Recession: Key Economic Conversations in 2023
It appears that an economic cycle characterized by over a decade of low interest rates and financial stimulus is drawing to a close. Investors now face a new reality where company fundamentals play a more significant role.