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In 2022, numerous unprecedented events led to a decline in asset prices across all markets, resulting in an historic decline in global investment wealth. This scenario is unlikely to reoccur for four primary reasons, which we discuss below. Key Takeaways: 2022 was an historically bad year: the worst in centuries for bonds, and the first time in history when both stocks and ...

Much academic and industry effort has been placed into how to meaningfully divide the equity markets in the US and other countries into parts which behave distinctly, cross-sectionally and over time. Fama and French (1998) were pioneers into dividing US equity markets by ranking on fundamental characteristics, finding important differences in high versus low-ranked stocks along ...

Retirement is fraught with uncertainty. Individuals approaching retirement face a variety of questions regarding their families, their health, and long-term market uncertainty. Financial planners must answer questions from clients seeking guidance and hoping to establish a secure financial cushion for their later years. One common question is, "how much do I need saved at retir ...

Key Takeaways  Beyond a historic decline in global investment wealth, what’s unusual for 2022 is that for the first time in history, both US large-cap stocks and long-term bonds had significant losses of more than 15% in the same calendar year.  Despite a challenging year, all New Frontier ETF portfolios delivered positive returns in Q4, outperforming the broad global equit ...

Key Takeaways Markets rose at the start of the quarter before dramatically reversing and ending down as a complex mixture of high inflation, aggressive central bank actions, and escalating geopolitical tensions affected performance. For the first time in modern history, both bonds and stocks experienced concurrent bear markets, leading to historical losses of total global w ...

Don’t Panic In the face of pessimism about the possibility of a recession and the Fed’s efforts to curb inflation at any cost, many investors may be worried. An analysis of the historical data from past recessions suggests that waiting for favorable market conditions could leave an investor at a disadvantage, compared to those who remain in, or enter, the market, irrespective ...

Bond investing has been challenging in 2022 due to historic macroeconomic events and significant interest rate hikes by the US Fed. The velocity of the yield change YTD has been stark, as illustrated below. For example, after an increase of nearly 200 bps through mid-June - with 10-year Treasury yields reaching 3.49% on June 14th - long-term yields declined by 90 bps in just th ...

In spite of high inflation, political gridlock and persistent supply chain issues, the US continues to see strong performance relative to other international markets. In this article, we attempt to elucidate why international exposures should still be part of an optimized portfolio, how international and emerging markets differ in make-up from US markets, and how factors such a ...

Key Takeaways Both equity and fixed income were under pressure with heightened volatilities, as worries over inflation and a possible recession spread. Consistent with broad markets anticipating a recession, New Frontier ETF portfolios saw negative returns this quarter, with different risk profiles performing as expected relative to the target risk level. For long-term inv ...

Key Takeaways: Historical one year returns after bear market events are higher on average compared to overall market history. Market volatility during the year following a bear market event is higher, and uncertainty of the 1-year return is also higher. For long-term investors, staying invested during a bear market rather than acting on the worst possible outcomes can be a ...