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Investment Management

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Jun 28, 2022
Bonds, Interest Rates, and Inflation
2022 has certainly been an interesting and somewhat stressful year for investors, with high inflation and market volatility dominating the financial news daily. During all of this, even bonds—historically less risky than stocks—have decreased in value year to date. To understand why, you must first understand the nature of bonds and why interest rates and inflation can impact the prices.
Jun 28, 2022
Jun 17, 2022
Don’t Forget the Golden Rule in Times Like These
Well, it’s official – we’re now in a bear market! Stocks, as measured by the S&P 500 Index (a proxy for large U.S. companies), have fallen by more than 20% from their all-time highs, while the Nasdaq Composite Index (almost half represented by technology companies) and the Russell 2000 Index (a proxy for small, U.S. companies) have both fallen by more than 30% from their respective highs. Even bonds, as measured by the iShares Core U.S. Aggregate Bond ETF and generally considered a safer type of investment, are down by more than 13% from their recent peaks. Right or wrong, markets have priced in a recession, very few things are working for investors, and it’s easy to understand why many people are feeling a sense of despair. It’s also the exact time when investors need to be reminded of the Golden Rule – sell high and buy low.
Jun 17, 2022
Jun 15, 2022
Our Perspective on Recent Market Activities - June 2022
Equity markets sold-off on Friday, following a disappointing Consumer Price Index (CPI) reading that showed headline inflation picked up last month, and that selloff continued through Monday. CPI was reported at 8.6% year-over-year, higher than last month’s 8.3% increase, and ahead of expectations. Core CPI, which excludes food and energy, came in slightly ahead of estimates at 6.0%, but that was down from 6.2% in April.
Jun 15, 2022
May 09, 2022
Our Perspective on Recent Market Activities - May 2022
Markets rallied following the Fed’s announcement of a 0.50% rate increase on Wednesday, due in part to hearing that larger rate increases were not imminent. But those gains evaporated Thursday as equity markets fell on the realization that the process of normalizing rates is just beginning.
May 09, 2022
Apr 25, 2022
Investor Concerns and Looking Ahead
After a sizzling 2021 and a roaring 4th quarter, equity markets began 2022 on a distinct down-note. Recovery from the COVID pandemic provided blue skies for two years of solid equity gains, but storm clouds were brewing on the horizon. Increased inflation caused interest rates to drift higher during the fourth quarter of 2021, and that rise began to accelerate in the new year, precipitating a sharp decline in equities, even before any official rate hikes by the Federal Reserve. Adding to the downdraft was a slump in economic activity from a resurgent COVID virus around the world, and then the onset of war in Europe as Russia invaded Ukraine. By their mid-March lows, the S&P 500 had entered correction territory with a decline of over 10%, and the NASDAQ Composite was in a bear market with a decline of more than 20% from its high.
Apr 25, 2022
Apr 25, 2022
Investor Concerns and Looking Ahead
After a sizzling 2021 and a roaring 4th quarter, equity markets began 2022 on a distinct down-note. Recovery from the COVID pandemic provided blue skies for two years of solid equity gains, but storm clouds were brewing on the horizon.
Apr 25, 2022
Mar 11, 2022
Understanding the Basics of an Annuity
Annuities have been around for many, many years and can be considered an investment product with an insurance-like attribute. They can be in accumulation mode or annuitization mode, they can be immediate or deferred, and they can be fixed or variable. They can also be treated very differently for tax purposes, depending on whether the annuity is held in a non-qualified or qualified account. Here’s what you need to know about these products, and how they may or may not fit into your overall financial plan.
Mar 11, 2022
Jan 19, 2022
Will It Be A Happy New Year for Investors?
The economy fired on almost all cylinders in 2021 and the S&P 500 Index is up approximately 26% through late December, versus 16% for all of 2020. While growth is expected to continue, it will likely slow, equity valuations are full, and anticipated headwinds should result in positive, but more moderate investment returns in 2022.
Jan 19, 2022
Jan 18, 2022
2021 Year in Review
The year 2021 saw a significant rebound in economic growth propelling real GDP above its pre-pandemic level. Equity markets followed along, making new highs throughout the year as corporate earnings continued their recovery. While the final numbers aren’t in yet, the expectation is that U.S. GDP grew at roughly 5.6%1 in 2021 and will likely carry that momentum into the first half of 2022 before slowing down later in the year. Not surprisingly, the primary driver of economic growth was the U.S. consumer who unleashed a wave of spending fueled by government stimulus payments, increased savings rates, and pent-up demand following 2020’s lockdowns.
Jan 18, 2022
Dec 21, 2021
The Craze of Cryptocurrency
In 2009 and in the wake of the Great Recession of 2008, the first digital currency was created by an individual or group of individuals identifying themself as Satoshi Nakamoto – a new “cryptocurrency” known as Bitcoin. Bitcoin is now one of over 7,800 different digital currencies in existence according to CoinMarketCap and it represents approximately half of the total market value of all cryptocurrencies combined.
Dec 21, 2021
Nov 30, 2021
Our Perspective on Recent Market Activities
Equity markets are down again today, after rebounding yesterday from Friday’s steep sell-off. Friday’s 2.5% drop took place as investors dealt with the news of another coronavirus variant labeled Omicron. The variant was originally reported in South Africa and has now been detected in other countries across the globe. This comes as some regions are still dealing with increased infection rates from the Delta variant.
Nov 30, 2021
Nov 03, 2021
Details on the ABLE Act for Disabled Citizens
In 2014, the Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act created a mechanism whereby disabled Americans could establish a tax-advantaged savings account, appropriately referred to as an ABLE account, to supplement their lifestyle needs. As defined by the Social Security Administration (SSA), being disabled is described as the inability to do any substantial gainful activity by reason of any medically determinable physical or mental impairment, which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
Nov 03, 2021
Oct 29, 2021
Economic Recovery, Inflation, and The Fed
After a strong start to 2021, the third quarter was a volatile one for global markets, as the Dow, the Russell 2000 Nasdaq and ACWI (All Country World Index) declined, while the S&P 500 was able to eke out a
Oct 29, 2021
Sep 27, 2021
Disappointing Investment Results? Maybe It’s You
In the investment world, and perhaps in life, there has always been a battle between the actions we should be taking and the actions we actually do take. It’s a battle between the impulsive part of our brain and the rational part of our brain and, unfortunately, the impulsive part of our brain often prevails. Human nature and our own innate biases work to our detriment in this regard and usually to the detriment of our portfolio returns. To understand why, we need to explore the foundations of neo-classical economic theory versus the principals of modern behavioral economics.
Sep 27, 2021
Aug 23, 2021
Inflation: Transient or Here to Stay?
Inflation seems to be top of mind lately, garnering the attention of economists, political pundits, business owners and laymen alike – but what exactly is inflation, how is it measured, what’s considered to be normal, and how high is it now? Also, what’s been causing prices to rise, how does the Federal Reserve Bank feel about recent inflationary trends, and what’s the bond market suggesting about the short-term or long-term nature of these trends?
Aug 23, 2021
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