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US Equity Returns Following Past Downturns

Sudden market downturns can be unsettling. Sticking with your plan helps put you in the best position to capture a recovery. A broad market index tracking data since 1926 in the US shows that stocks have generally delivered strong returns over one-year, three-year, and five-year periods following steep declines. Fama/French Total US Market Research Index...

Tuning Out the Noise

For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as affecting your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the so-called lost decade–the 2000s, when the S&P 500 ended below where it...

Happy Holidays from Global

From all of us at Global, we wish you a very Happy Holiday season and a peaceful and prosperous New Year. We hope you enjoy this year’s animated card. Depending on your browser and device, you might need to click the play button for the video to start. Our offices will be closed on:Tuesday, December 24thWednesday,...

Hindsight Is 20/20. Foresight Isn’t.

The year 2019 served up many examples of the unpredictability of markets. Interest rates that US policy makers expected to rise fell instead. American consumers’ confidence weakened as the year began,1 and news headlines broadcast fears of an economic slowdown. But investors who moved onto the sidelines may have missed the gains in the US stock market....

How Markets Work and the FAANG Mentality

Is the market getting by with a little help from the FAANGs? And does their performance stand out historically? Investors may be surprised that it's common for a subset of stocks to drive a sizable portion of market returns. The stocks commonly referred to by the FAANG moniker—Facebook, Amazon, Apple, Netflix, and Google (now trading as...

Value Judgements: Viewing the Premium’s Performance Through History’s Lens

Has value really lost its vigor? While growth stocks have outperformed in the past decade, value returns have largely tracked their long-term historical average. There’s a misconception in the markets: value stocks have lost their vigor. Value stocks have underperformed growth stocks over the past decade. In the US, the annualized compound return has been 12.9% for...

A Tale of Two Decades: Lessons for Long-Term Investors

Comparing market returns across the 2000s and 2010s reinforces the benefits of diversification and pursuing known drivers of higher expected returns. The first decade of the 21st century, and the second one that’s drawing to a close, have reinforced for investors some timeless market lessons: Returns can vary sharply from one period to another. Holding a...

Why Is Inflation So Low? (And What to Do About It)

Ronald Reagan famously described inflation as being “as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” While the inflation experienced under President Reagan was all those things, inflation over the past decade would struggle to get a ticket for jaywalking. Since the global financial crisis of 2008 and...

IPOs: Profiles Are High. What About Returns?

Initial public offerings (IPOs) often attract initial public interest—especially when familiar brands become broadly available to investors for the first time. In recent months, investors have had the opportunity to buy shares of ride‑hailing networks Uber and Lyft, workplace productivity services Zoom and Slack, and other high-profile businesses ranging from Pinterest to Beyond Meat. News...

Timing Isn’t Everything

Over the course of a summer, it’s not unusual for the stock market to be a topic of conversation at barbeques or other social gatherings. A neighbor or relative might ask about which investments are good at the moment. The lure of getting in at the right time or avoiding the next downturn may tempt even...