On May 20, the U.S. stock market had fallen 20 percent from its January 3 peak. The media pounced, reminding investors that stocks had officially entered bear market territory. Talking heads on cable news debated whether investors should expect further declines, or whether this event represented an opportunity to “buy the dip.” As it happens, […]

We often caution readers to be wary of investment vehicles that seem “too good to be true.” Occasionally, however, attractive opportunities arise with minimal downside. Currently, U.S. Treasury Series I Bonds fit this description for investors in the right circumstances. I Bonds are U.S. Savings Bonds that earn tax-deferred compound interest adjusted for recent price

Economists contend that preferences among individuals are wide-ranging and that, generally, people should be able to make decisions freely. We are skeptical of policies that distort peoples’ choices because a cost is incurred when someone feels compelled to make a choice that differs from his or her preference. Price inflation distorts our choices. During the

Investors who own emerging markets funds have a portion of their wealth exposed to the Russian stock market. Here we quantify that exposure and describe the risk control methods employed by our favored emerging market equity funds. Emerging market stocks, like all stocks, bear risk. These risks are wide ranging and might include perils such

The U.S. stock market returned nearly 26 percent in 2021 despite labor shortages, supply chain issues, political gridlock, and the highest rate of annual price inflation in forty years. At the end of the day, fundamental market drivers drove the market: interest rates increased but remained historically low, while corporate earnings were strong. We hope

The threat of the Covid virus has persisted stubbornly and has now mutated into the highly virulent Omicron strain. This development is both disheartening and frightening. But investors who follow our approach should, depending on their personal circumstances, stick to their designated allocation plan. The market has grown more turbulent since late November, when Omicron

Hardly a day goes by without a prominent news story pertaining to China. Recent topics have covered the country’s use of forced labor and the financial troubles plaguing real estate giant Evergrande. Geopolitical stories have drawn attention to China’s military buildup, its participation in a multinational climate agreement, and its massive exports vis-a-vis the global

As we approach year-end, investors with taxable accounts should consider taking action to reduce any tax liability due on capital gains they may have realized throughout the year. Here we describe techniques for offsetting these gains, as well as other means of reducing your tax burden in 2021 and beyond. Tax Year 2021 Tax year

Global capital markets are impacted by news every day. Over the past several weeks, headlines have highlighted the hasty withdrawal of U.S. forces from Afghanistan, the rise of the Taliban, and the potential for further destabilization in the Middle East and central Asia. More recently, markets were shaken by the potential failure of Chinese real

A new Presidential administration often means tax overhaul. The 2017 Tax Cuts and Jobs Act (TCJA) reduced ordinary income tax rates, increased the standard deduction, and raised the federal estate tax exemption, among other changes. Now investors wait anxiously as the new administration is poised to reverse course. To pay for substantial new spending, the