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2nd Quarter 2010
Market Commentary
Financial markets in the second quarter reflected increased concerns about the state of the economic recovery and elevated debt levels among advanced economies. Equity markets around the world suffered declines in the quarter, with the S&P 500 down 11.9%, the EAFE index of developed foreign markets down 16.9%, and the EEM index of emerging markets down 11.4%. Fixed-income markets were relatively stable although yields rose in several European countries with high debt ratios.
As we discussed in our client seminar on June 16, we believe the global recovery remains intact although it is not as robust in the U.S. and other advanced economies as hoped. While U.S. manufacturing activity and corporate profitability have rebounded...
Washington Watch
"Cash for Clunkers"
On June 24, 2009, President Obama signed into law the Consumer Assistance to Recycle and Save (CARS) Act of 2009. The legislation creates a new program, commonly referred to as "Cash for Clunkers." The National Highway Traffic Safety Administration (NHTSA), though, refers to the program as the Car Allowance Rebate System. The program provides $3,500 or $4,500 vouchers...
Worker, Retiree, and Employer Recovery Act of 2008
On December 23, 2008, the President signed into law the Worker, Retiree, and Employer Recovery Act of 2008. Much of the legislation relates to pension plan funding requirements and technical corrections for the 2006 Pension Protection Act. However, one of the most significant provisions...
American Recovery & Reinvestment Act of 2009
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (the 2009 "Stimulus Act"). The legislation carries a projected cost of $787 billion, and contains hundreds of provisions. Key provisions include...
Understanding the First-Time Homebuyer Tax Credit
If you recently purchased a first home, or intend to purchase a first home in the next few months, you may stand to benefit from the first-time homebuyer tax credit provisions...
Making Home Affordable Act
The Making Home Affordable plan is made up of two plans... |
Featured
Government's TARP & Stimulus Programs Are Earning Good Returns on Investment
The extensive media coverage of the government’s rescue and stimulus programs during the recession has faded away, with far less coverage of their outcomes. Unless an individual is willing to devote an extended period of time to digging through government websites and trawling for useful data in reports, it is quite difficult to extract the effects of the government’s investments during the recent economic crisis. Despite the lack of publicity these programs are receiving, it appears that the investments have been quite effective...
Should I Refinance Mortgage?
One positive by-product of the financial crisis, sluggish economic recovery and stock market volatility is that long-term mortgage rates are at their lowest level since Freddie Mac started tracking it in a weekly survey in 1971. According to the survey released August 12th, the nationwide average on a 30-year fixed rate mortgage was 4.44%, down 5.29% at this time last year.
As interest rates have fallen from 8% just ten years ago, many people have already taken advantage of refinancing their existing mortgage at least once if not twice this decade. But the 40-year low in interest rates raises the question again, “Should I refinance my mortgage?”
Choosing to analyze the markets over specific decades like the 1950s, 1970s or 1990s is quite arbitrary. Given ever evolving economic, political, geopolitical, and social conditions, there is nothing that makes the period 1960-69 more important to understanding the history of the markets than say 1962-71, for example. Measuring investment performance is a continual process, not something that starts anew every ten years.
The 2000-09 period is unique, however, in that it produced one of the lowest ten-year average annual return for the S&P 500 Index (a common stock market index) dating back to at least 1929-38. The Index lost a total of 9% (including dividends), leading many in the financial media to dub it as “the Lost Decade” for investors. Thinking back to the turn of the millennium in 1999, we were living in a very different world than we are now, and there were few, if any, who could have envisioned what the next ten years would hold.
As we enter the next decade, we thought it would be helpful to reflect on some “lessons” learned..
National Association of College and University Business Officers
Spero-Smith Chief Investment Officer Mimi Lord has researched college endowment portfolios for many years. She was recently invited to attend a national conference on endowment management and wrote an article about it for the magazine of the conference sponsor, the National Association of College and University Business Officers (NACUBO). Click here to be directed to the article.
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Markets
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