How can investors make sense of the apparent disconnect between stock market performance and economic indicators? Do you find it puzzling when a bleak economic report emerges from the press, only to be accompanied by a positive surge in the stock market? You’re not alone. The last few weeks have produced many examples of a stark contrast between stock market performance and economic indicators. So why the apparent disconnect? Markets are forward-looking, meaning current asset prices reflect market participants’ aggregate
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Insights
Under the Macroscope: When Stocks and the Economy Diverge
The Bumpy Road to the Market’s Long-Term Average
Since 1926, the US stock market has rewarded investors with an average annual return of about 10%. But it’s important to remember that returns in any given year may be sky-high, extremely poor, or somewhere in between. Annual returns came within two percentage points of the market’s long-term average of 10% in just six of the past 94 years. Yearly returns have ranged as high as up 54% and as low as down 43%. Since 1926, annual returns have been
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May Planning Action Items
With travel plans and home events gearing up in the summer months, May is a great time to review your emergency savings and property casualty policies to ensure you’re properly protecting your assets. Emergency Savings – The more you earn, the higher your expenses, and the more important this key account becomes in protecting your wealth. Set aside in a specifically designated savings account enough cash to cover a minimum of 6 – 12 months worth of expenses. Obviously, in
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