Our clients, and investors broadly, have been asking this important question: How do we reconcile the recent stock market gains, particularly in the United States, with the poor state of the current economy? In this article, we discuss the variables that impact investor behavior and provide context for why financial markets can rally in the face of negative news.LGPS-Why-is-the-Market-Going-Up-When-Economic-News-Looks-Grim
Listen to a replay of our first quarter 2020 Litman Gregory research team webinar. Topics covered (among others): U.S. stock valuations, managed futures, munis vs. taxable bonds, REITs, the tsunami of federal spending.
View and download the presentation slides here:Litman-Gregory-Q1-2020-Research-Webinar-Presentation-Slides
Financial markets were choppy in the third quarter, buffeted by some familiar themes: on-again/off-again U.S.-China trade war headlines, weak global growth, recession fears, and central bank monetary policy. The bulk of this month’s commentary is devoted to laying out our compelling case against a higher U.S. stock allocation and why we favor international stocks.Litman_Gregory_Third_Quarter_2019_Investment_Commentary
Across the board, it was an extremely difficult year to make money in the financial markets, with almost every asset class and financial market down for the year. The contrast with 2017’s strong market results is also striking—and serves as a useful reminder of the unpredictability of markets.Year-End-2018_Investment_Commentary