Tag Archives: US Markets

US Equity Returns Following Past Downturns

US Equity Returns Following Past Downturns

Sudden market downturns can be unsettling. Sticking with your plan helps put you in the best position to capture a recovery. A broad market index tracking data since 1926 in the US shows that stocks have generally delivered strong returns over one-year, three-year, and five-year periods following steep declines. Fama/French Total US Market Research Index […]

Dangers of Instinctive Investing

You’ve probably read about behavioral finance research. The conclusion is generally the same, no matter what aspect of our decision-making is being probed: the human mind is hard-wired to process information in certain ways which were extremely helpful when the environment contained gazelles (very tasty!) and saber-toothed tigers (extremely dangerous!), but are not so helpful […]

Beware – 2013 Crystal Balls

One of the more interesting myths in the investment world is that large financial institutions, with their access to mountains of data pored over by teams of staff economists, can determine where the markets are going and profit accordingly. Too many investors believe this even though, every year, we can go back to the confident […]

The Mother of Overreactions

The big news in the markets was the markets themselves: on Monday, in the U.S., the S&P 500 fell 79.92 points, losing 6.66% of its value.  The Dow was down 5.55% and the Nasdaq technology index dropped 6.90%.  Globally, the EAFE index, which tracks the overall market moves in the developed nations, fell 3.37%. Until […]

Comment: Market Volatility

Following this week’s stockmarket volatility. Key points: Fundamental elements to market turmoil – sovereign debt concerns and weakening US growth But we believe the past few days reflect investor panic rather than true prospects for global assets There is a significant fundamental element behind the current market volatility, with European sovereigns facing very real problems […]