In this month’s video, I look at key trends developing in global stock and bond markets. Chart review includes analysis of large-cap, small cap, emerging market, high yield, interest rates, and gold prices. Observations of risk and reward are noted throughout with an emphasis on caution for new money at this phase of the rally in stocks. Recorded on March 7, 2017.
The strength of broad domestic stock market indices in 2017 has been the dominating story in global financial markets. The expectation of new government policies, coupled with the lack of risk asset volatility, has many investors feeling confident in a continuation of the bullish trend.
As of last week, ETFs trading in the United States have accumulated over $75 billion in fresh capital inflows since the start of the year. The majority of that money has gone towards stock-focused index funds such as the SPDR S&P 500 ETF (SPY).
Some would say (read: my wife) that I’m a creature of habit. However, I think that having consistency with your investment routine creates a culture of success. It allows you to continually act on what works and avoid straying from a predesigned plan of attack.
One of my habits is to write an annual review of the lessons I learned over the preceding twelve months. The purpose is to impart both successes and missteps in a way that bolsters your own investment endeavors. Many of these lessons are ones that I continue to re-learn or emphasize every single week. Read more
Investors are likely feeling emboldened by the strength of stocks as we close out the final month of 2016. Bullish enthusiasm can be infectious and now the race is on to determine which sectors or regions will be the top-performing areas of the market in 2017. While there is no way to know where the winner will be ahead of time, there is one noteworthy area that has piqued my interest – emerging markets. Read more
It’s hard not to be optimistic about a stock market that is trading within a few points of all-time highs.
You get that sense that everything is going to continue to strengthen indefinitely because there has been such a positive short-term catalyst from the election. When coupled with the overwhelming cash on the sidelines and new money pumped into bond funds that are now underperforming, you get the sense that stocks could keep running for quite some time. The truth is that they can. Read more