Recent Blog Posts

Market Flash - January 2022

The new year got off to a rocky start, with nearly all major asset classes finding themselves in negative territory. U.S. large cap stocks declined by just over -5% during the month of January, while U.S. investment grade bonds lost -2.15%. The primary cause of the decline appeared to be a combination of seemingly related factors, which included – concerns around inflation, sharply higher interest rates, and hawkish rhetoric from the Fed.

Rebalance Announcement – January 10, 2022

2021 was a unique year for asset class returns, with U.S. stocks soaring higher by 28.71%, while investment grade U.S. bonds declined by just over -1.54%. This has caused investors’ portfolios to drift away from their target allocations, leaving many with an overweight to equities and a corresponding underweight to fixed income.

Large Losses or Dividend/Capital Gains Distributions?

Over the past week, we have received several calls regarding what appears to be large drawdowns in certain ETFs in our portfolios. In both instances, the drawdowns resulted from large dividend or cap gain distributions, not actual losses. It is common for a fund or ETF to trade “ex” the dividend a few days before seeing the dividend post to accounts. At first glance, it can take you by surprise, with the immediate reaction being poor market performance as the likely cause.

November 2021 - Market Flash

News of a new COVID variant, dubbed Omicron, and hawkish language from Fed Chair Jerome Powell led to a volatile month for both equity and fixed income investors. Equity markets ended the month lower by -0.69%, despite starting November on strong footing. This decline began on Black Friday and coincided with the announcement of the newly discovered Omicron variant.