Category Archives: Economic trends

A Sea Change in Volatility?

After hitting an all-time low in 2017, investor expectations of stock market volatility have started to rise this year. While these market jitters are at least partly due to eventful headlines, there’s another, more fundamental explanation that may be playing a role: The Federal Reserve’s decision to reduce its bond holdings may be contributing to increased volatility in the stock market. Read more »

The Pitfalls of Passive Investing

When market returns are attractive, as they have been for the last several years, the lure of passive investing is strong. After all, who wouldn’t want to capture market returns when the market is booming? (Passive investments, or index funds, closely mirror indexes in order to provide investors with broad market exposure at a generally lower cost than actively managed funds.) Passive investing can serve a purpose in a portfolio, particularly in more efficient asset classes, but investors should be aware of the pitfalls of overusing passive investment strategies, as outlined below. Read more »

The Dangers of Complacency in Investing: Four Steps to Position Your Portfolio for the Future

When things have been good for a long time in the market, the human mind naturally adjusts and builds its idea of “normal” around the current environment. This “new normal” sets the stage for future decision-making. But beware of this tendency, because it can be deceptive! Since it’s impossible to predict future market movements, investors should base their strategy on a long-term plan, not on the current environment. Read more »