Weekly Client Letter

Market Summary

Weekly Client Letter – January 27, 2025

As President Trump takes office, he is greeted with unusually high stock prices, a situation that can make the financial markets more sensitive to changes in policy. This unique challenge means that decisions made during his presidency could impact the market more significantly than usual. No administration has dealt with higher valuations when taking office.

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Market Summary

Weekly Client Letter – January 21, 2025

Historically, stocks and bonds have had a negative correlation, allowing bonds to act as a stabilizer during stock market downturns. Recently, however, this relationship has turned positive, meaning the traditional diversification approach may no longer offer the same protection. Similar to 2022, when stocks and bonds move in tandem, both assets can decline simultaneously, leaving

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Market Summary

Weekly Client Letter – December 30, 2024

Wall Street “experts” predict the market’s direction every year – and for the last five years in a row, they’ve been wrong. The chart makes it clear: the only consistent thing about these predictions is how inaccurate they are. Even with endless data and resources, forecasting the market’s future remains unreliable. That’s why at Redwood,

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Market Summary

Weekly Client Letter – December 16, 2024

Investor optimism is showing up in big ways: U.S. exchange-traded funds (ETFs) have already taken in over $1 trillion this year, breaking 2021’s record with two weeks left to go. November was especially striking, with daily inflows averaging $7.3 billion, fueled by expectations that the incoming Trump administration’s tax policies could boost growth. Equity ETFs

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