Some investors today are doing what worried investors always seem to do in times of stress—trying to avoid “risk” by buying the “safest” assets. In this case that has meant buying government bonds from the United States, Germany, Australia, the Netherlands, and other countries considered safe havens. Panic buying has pushed yields in some cases to negative levels, meaning investors […]
Month: July 2012
What will the presidential election do to the market?
Spoiler alert: You are about to hear what effects this year’s Presidential election may have on the U.S. stock market six months down the road. Are you ready? The answer is probably not much. That’s right: a hotly contested election pitting competing economic policies against each other in a time of world financial crisis probably will make little difference to […]
Client Letter – Q2 2012
During the past quarter, U.S. and international stocks were back in negative territory, with international and emerging markets down the most. This quarter had a negative impact on our one-year returns, leaving only the S&P 500 and real estate in positive territory for the year. The following chart shows the 1-year, 5-year, and 10-year performance of many DFA funds (representing […]
