The return of inflation worries is an unwelcome change for investors and makes the current environment challenging. While this development will likely lead to short-term volatility, it is in more difficult times that sticking with a well-thought-out, long-term plan is most important.
An overview of the 3rd quarter in investing, Facebook issues, and a look ahead to potential tax planning opportunities.
Equity markets continued their strong march upward in the second quarter, though leadership among sectors and asset classes shifted somewhat as investors grappled with conflicting data on the pace of economic recovery, as well as mixed signals on monetary policy from the Federal Reserve. Nevertheless, every asset class in client portfolios once again notched positive returns for the quarter (...)
In the wider world, hope for a return to normal, or an even better new normal, is steadily gathering steam. There is light at the end of this pandemic tunnel, but the journey has been long and hard.
2020 was a uniquely harrowing year. More than 1.7 million people have died in the COVID-19 pandemic, with trillions of dollars in economic damages around the world. Millions of people are out of work and struggling to pay their bills.
Global markets continued their recovery in the third quarter, albeit at a more measured pace than the second quarter. Once again, every major asset class notched positive returns, with stocks from Emerging Markets and Natural Resources leading the way. On the bond side, we note the excellent returns from US TIPS over the past 12 months, supported by lower interest rates and a change in inflation expectations. Finally, the other assets category performed well with average returns exceeding U.S. bonds' but lagging equities' overall.