Article by James Liu, CFA. Founder and Head of Research Clearnomics. While 2023 has been a better year for bonds after last year's bear market, rising interest rates over the past three months have acted as a headwind. The U.S. Aggregate bond index has gained 0.6% this year, down from a peak return of 4.2% in April. Similarly, corporate bond returns have receded to 1.8% from 5% prior to the banking crisis earlier this year...
Article by James Liu, CFA. Founder and Head of Research Clearnomics. Investors have grappled with market and economic challenges this year ranging from Fed uncertainty, stubbornly high inflation, the possibility of a recession, a banking crisis, the debt ceiling, ongoing geopolitical tensions, and more. And yet, the stock market has made significant year-to-date gains with the S&P 500 returning 12.4% with dividends and the Nasdaq 27%. This is further evidence that markets often defy expectations...
Article by James Liu, CFA. Founder and Head of Research Clearnomics. The repercussions of inflation, Fed rate hikes, the ongoing banking crisis, and the approaching debt ceiling deadline are being felt throughout the financial system. One area directly impacted by these shocks is real estate, across both the residential and commercial sectors. Commercial real estate (CRE), in particular, is highly dependent on regional and smaller banks, including those that have struggled or failed since early...
Article by James Liu, CFA. Founder and Head of Research Clearnomics. On the morning of May 1, it was announced that First Republic Bank had been taken over by the FDIC and sold to JPMorgan Chase. Eleven major banks had previously infused First Republic with $30 billion in deposits to stabilize the bank after the failures of Silicon Valley Bank, Signature Bank, and Credit Suisse. This process found new urgency over the past week when...
Valerie Peck |
In the last few years, portfolios and financial plans have been tested by the pandemic, the highest inflation rates since the 1980s, global conflicts, political uncertainty, asset bubbles, and swiftly shifting monetary policy. Even when times are otherwise calm and markets are steadily rising, including from 2009 to 2020, investors and the media always find reasons to be worried. So, while it's important to understand the individual issues, it's perhaps more important to maintain a...