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Financial Alternatives News and Insights

Integrated Wealth Management

Investing Newsletter - Jan 2021

Investing Newsletter (click image to open newsletter)

Investing Newsletter (click image to open newsletter)

  • In the face of a global pandemic, stock and bond markets performed surprisingly well in 2020.

  • Last year investors experienced one of the swiftest drops and subsequent full recoveries in stock market history.

  • We took advantage of the correction and rebalanced portfolios in March when the market was low. We also took advantage of market lows by executing tax-saving tax swap trades.

  • Over the next 10 years, Vanguard expects stock and bond returns to be lower than historical norms.

  • GMO’s 7-year return forecast is significantly lower than Vanguard’s.

  • Both Vanguard and GMO expect equity markets outside of the U.S. to outperform.

  • The possibility of lower future returns should be taken into consideration in your future financial planning.

  • Staying diversified and disciplined and maintaining a long-term investment perspective is the best course of action going forward, as always.