As hard as this is to believe, the COVID-19 pandemic started three years ago. Today, Ed Lambert and Alex Cabot look back at the economy and capital markets over that period. Interestingly, both are close to where they'd have likely been without a global pandemic.
First, Ed looks at the economic data, from Factset, comparing GDP, inflation, unemployment, and the ten-year treasury bond rate. And despite the stock market having its worst 23 day period ever in 2020, and $5 trillion in stimulus being pumped into the US economy, the unemployment and GDP are close to where they were three years ago. Yes, inflation and interest rates have changed, but if you told us back in 2020 where we'd be in early 2023, we'd likely have taken it.
Alex looks at the markets next, checking the annualized total returns over the last three years. Thanks to data from FactSet, he looks at Large, Mid, and Small Cap US stocks, Developed International, Emerging Markets, and REITS. What's most remarkable about these numbers? Well, it's how unremarkable they are. And this takes into consideration the tumult of early 2020, and the market drop of 2022.
As Alex says, we're on a roller coaster. But they key is not giving into human nature and seeing how high we can go, but rather growing our assets over time.
Financial education and literacy are very important to the team at Birch Run Financial. Alex and Ed are always happy to have a conversation with you, whether you're a client or not.
You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.
Or visit them on the web at https://www.birchrunfinancial.com/
Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536
You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.
Or visit them on the web at https://www.birchrunfinancial.com/
Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536
Any opinions are those of Ed Lambert Alex Cabot, financial advisors, RJFS, and Jon Gay, and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. Stock Market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions. International investing involves special risks, including currency fluctuations, differing financial accounting standards, and possible political and economic volatility. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise. Investing in small cap stocks generally involves greater risks, and therefore, may not be appropriate for every investor. The prices of small company stocks may be subject to more volatility than those of large company stocks. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Birch Run Financial is located at 595 E Swedesford Rd, Ste 360, Wayne PA 19087 and can be reached at 484-395-2190.
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