25 October 2020
  • Featured Posts
    Q3 2020 Market Commentary: Summer Rebound, Fall Slump?
    Bill Oakley

    The summer brought an economicrebound and a continuation of the stock market rally that began in spring. Inlate September, the Federal Reserve Bank of Atlanta's GDPNow tracker estimatedreal Gross Domestic Product (GDP) growth of 32.0% for the third quarter. Allthree of the major Wall Street benchmarks advanced in Q3; the S&P 500 addednearly 8%, ending the quarter up about 4% for the year. Even so, U.S. equitiesslumped in September as traders worried that the stock market might be gettingahead of the economy.

  • Featured Posts
    Economy
    Economic and Market Recovery Facing Headwinds
    David Park
    CEO of Austin Capital Trust
    When the stock market rallied back in the beginning of March, it seemed the market was anticipating a V shaped recovery. Six months later, some of the optimism seems justified.  The economic recovery has shown surprising resilience in the face of increasing levels of coronavirus infections and expiring fiscal stimulus.
    Economy
    Envisioning a Post-Pandemic Future
    Joe Davis
    Vanguard's Chief Economist
    TheAmerican mathematician Claude Shannon famously established a lower bound forthe number of possible moves in a typical chess match: around 10120. That’s 10with 119 zeroes after it. Reflecting on when the COVID-19 crisis began tounfold across the globe, I think the Shannon number adequately captures thebreadth of possible economic outcomes at the time.
    Economy
    Weekly Market Update: Stocks Power Higher, While the Dow Makes Changes
    FamilyWealth Advisers
    Stocks advanced relentlessly last week on positive COVID-19 developments, encouraging economic data, and a supportive policy shift in the Fed’s approach to its target inflation rate.  The Dow Jones Industrial Average increased by 2.59%, while the Standard & Poor’s 500 jumped 3.26%. The Nasdaq Composite index leaped 3.39% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.19%. 
    Economy
    Monthly Market Update: August 2020
    FamilyWealth Advisers
    Stock prices rallied in July as further development of a COVID-19 vaccine and better-than-expected corporate financial reports encouraged investors.
    Economy
    Stocks See Mixed Week as COVID-19 Cases Rise, and News of Vaccine Emerges
    FamilyWealth Advisers
    Stocks were mixed last week as investors reacted to positive economic data, progress on a COVID-19 vaccine, and the continued nationwide increase of COVID-19 cases.
    Investments
    The 4% budget: Why spending flexibility is more important than withdrawal rate in retirement
    Rob Berger
    The recent market declines triggered by the COVID-19 pandemic raise important questions for those in or near retirement. When you add in historically low yields on fixed income investments and an uncertain economic future, questions arise about how retirees will weather the storm. Among other things, some may be questioning whether the 4% rule on investment withdrawals remains viable.
    Investments
    Your Legacy Is More Than Just Your Portfolio
    Matthew Barrovecchio
    If you’re like most people, when you hear the phrase “legacy planning,” youprobably think about how you’ll pass your assets to your heirs. 
    Pension
    Long-Term Care...What You See Isn't All There Is
    Jean Young
    I write a lot about the state of retirement in America and how certain saving behaviors can help set you up for success. But until recently we hadn’t fully addressed the elephant in the room: the costs of health care and long-term care in retirement.
    401k
    4 Steps To Prepare For A Secure Retirement
    Colleen Jaconetti
    Senior Investment Analyst of Vanguard's Investment Strategy Group
    If you work and save from age 18 to age 63, you’ll spend around 45 years preparing for a retirement that spans about half as long—just over 22 years.* Your personal circumstances will determine whether you remain in the workforce (and continue saving) longer.
    Economy
    New Fed Chair, New Challenge
    Joe Davis
    Vanguard's Chief Economist
    When Jerome Powell presides over his first Federal Open Market Committee meeting as the new Federal Reserve chairman on March 20–21, the seat will be less comfortable than it was just two months ago, when the U.S. Senate approved his nomination.
    Investments
    Bitcoin: Digital gold or fool's gold?
    Joe Davis
    Vanguard's Chief Economist
    Over the past few months, I’ve been asked this question more than any other. In 2017, Bitcoin, the world’s first cryptocurrency, rose by almost 1,200%, prompting excitement and bafflement. My answer: I’m enthusiastic about the blockchain technology that makes Bitcoin possible. In fact, Vanguard is using such technology. As for Bitcoin the currency? I see a decent probability that its price goes to zero. 
    Debt
    Answers To Top College Savings Questions
    Charu Chander Gross
    Vanguard Education Savings Group
     Remember the days before theinternet? It was almost impossible to access certain information, like songlyrics. People would go years singing the wrong words while insisting they wereright. 
    Retirement
    Are You Confident You're Saving Enough For Retirement?
    Tony Giordano
    A recent online study,* which had a significantly larger sample size, foundthat only one-third of retirees are confident in their ability to livecomfortably throughout retirement. 
    Economy
    When the Fed Talks Inflation, Bond Investors Listen
    FamilyWealth Advisers
    In the past, the Fed said it would consider adjusting short-term rates when inflation approached 2 percent. But in light of 2020’s many challenges, the Fed’s new policy may allow inflation to run above 2 percent for a period of time before any shift in monetary policy is considered.