Insights

In or Out? If your asset allocation from a week ago made sense then, what has changed to make it less appropriate today? Avoiding knee-jerk reactions in these scenarios is usually the prudent course. To help quell the fears of those still tempted to temporarily take risk “off the table,” we ran a few experiments to help demonstrate why staying the course has historically been shown to be a good option. It is good to remember that for any market
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KEY TAKEAWAYS Single stocks have a wide range of returns. Only about a fifth of stocks survive and outperform the market over 20-year periods. They delist at a high rate, even those that have been around for a long time and have outperformed the market for 20 years. The chance of any single stock outperforming the market in the future is not meaningfully different when conditioning on its past performance. Many investors end up holding large concentrated positions in single
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On May 4, the US Federal Reserve increased the target federal funds rate(1) by 50 basis points as part of what the central bank said will be a series of rate increases to combat soaring inflation in the US. Some investors may worry that rising interest rates will decrease equity valuations and therefore lead to relatively poor equity market performance. However, history offers good news: Equity returns in the US have been positive on average following hikes in the fed
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