Simon Hamilton, Managing Director and Portfolio Manager, discusses the vacillating stock market narrative and how trying to divine the timing and magnitude of sector movements may be a fool's errand. He examines how stocks have fared in similar elevated rate environments and how the inflation trajectory will likely be more impactful. He also makes the case for locking in current bond yields and to consider longer-dated maturities. He offers some counsel to younger investors by examining the trading habits of millionaire investors and how savings rates influence wealth creation more so than returns.
Disclosure: Holding investments for the long term does not ensure a profitable outcome. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are special risks associated with investing with bonds such as interest rate risk, market risk, call risk, prepayment risk, credit risk, reinvestment risk, and unique tax consequences. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. Inclusion of indexes is for illustrative purposes only. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transactions costs or other fees, which will affect actual investment performance.
