Weekly Client Letter

Traditionally, stocks and bonds have played a seesaw game – when one rises, the other tends to fall. This dynamic has been advantageous for investors like yourself. This strategy is known as “diversification,” a key principle in managing investment risk. However, stocks and bonds have been moving in the same direction recently. Between the S&P […]

In 2023, seven stocks-dubbed the “Magnificent Seven” (Apple, Alphabet, Microsoft, Amazon, Meta, Tesla, and Nvidia)-took the spotlight with remarkable gains, soaring by an average of 93%! However, it’s surprising to note that despite this strong performance, these stocks have merely returned to their peak from 2022. It’s important to remember investing is a journey and

Every year, big Wall Street banks predict where the stock market will end up the following year. How many got their 2023 prediction right? 0! In fact, with all their data and resources, only 5 times out of the last 13 years has the stock market even closed within the full range of predictions from

While the market closes in on its all-time highs, an examination of the market breadth suggests a potential turning point. Market breadth refers to the number of stocks in an index performing above their usual levels. In the S&P 500, a substantial percentage of companies are trading significantly above their average prices for the past

As the year winds down, headlines often scream about record highs, double-digit returns, and the market’s fantastic performance. But these catchy headlines rarely tell the full story of what’s happening in the investment landscape. Let’s focus on the S&P 500 this year-it’s shown a 24% increase. However, surprisingly, more than 15% of this return comes

Amid the current economic landscape, future expectations regarding inflation have dipped to their lowest levels in years, offering the Federal Reserve reason to celebrate as they tame one of their key mandates. However, despite this positive trend, the Central Bank remains cautious, signaling that it’s still premature to delve into discussions around potential rate cuts.

The Federal Reserve’s recent slowdown in rate hikes marks a shift in the financial landscape, but the journey so far has been anything but smooth, especially for the U.S. 10-Year Treasury Yield. Initially rising with Fed policy, the easing of inflation has triggered speculation: will the Fed maintain higher rates for an extended period, or

Analyzing the key force steering the current market environment reveals an intriguing pattern. When we look at one of the most widely followed U.S. equity benchmarks, the S&P 500, a notable observation arises: the collective weight of the top 5 companies in the index exceeds 25%, reaching an unprecedented high. This surpasses even the tech-driven

In recent years, the bond market’s notable decline has left fixed-income investors facing a tough situation. Many bonds and bond funds currently sit at considerable losses. Waiting for these securities to recover fully may take an extended period, especially considering that bonds lack the same potential for substantial upward movement as equities. One strategy gaining

“Drawdown” is a financial term used to describe how much loss a portfolio or position has experienced in a given date range from its high point (also known as peak). Most of the time you will see headlines only capture the extreme of the scenarios. They focus on “all-time highs” or the “lowest lows” when