February 2020 Review of Market and the Economy

Macro Overview Amid uncertainty surrounding the spread of the coronavirus throughout China and internationally, global equity and bond markets reacted to supply chain disruptions and factory closures. China’s vast manufacturing sector, which is an essential component of supply chains for many U.S. companies, has become vulnerable to plant closures and employee quarantines throughout the country. […]

After the 10-Year Bull Market, Are Stocks Overvalued? After the 35-Year Bull Market in Bonds, Are Bonds Overvalued?

While no one can ever predict the future, valuations do matter and are in our opinion, very important in determining future results. The graph below shows that bonds are overpriced compared to stocks. The historical comparison of the Standard & Poor’s (S&P) 500 price-to-earnings (P/E) ratio to the 10-year Treasury bond P/E ratio for the […]

January 2020 Economic & Market Commentary

What a difference a year makes! Unlike last year, there was no lump of coal in investors’ stockings in 2019. Instead most got a pot of gold. It was a difficult year to lose money, as virtually all asset classes ended the year with a profit – a total reversal from 2018 when the Grinch […]