Economic Insight: Fed policy goes back to the future
Thomas Luster, April 2014
We fully expected the strength the economy showed in late 2013 to carry over into 2014; however, that was simply was not the case. Instead, we saw weaker-than-expected economic data across a wide range of economic indicators.
In the coming weeks, we believe the data will confirm that severe winter weather patterns, slower global growth (especially in China) and a reduction of last year’s inventory build were worthy of blame for the loss of economic momentum in the first quarter.
Confronting the tax drag
- The impact of the “tax drag” on investor portfolios can be significant over long time frames, potentially consuming a quarter or more of every dollar earned by the average investor.
- As federal tax rates have risen for many investors, so too has the risk of losing a larger portion of one’s returns to taxes—highlighting the need for a tax-aware investment approach.
- Municipal and tax-advantaged bond strategies, tax-efficient equities and solutions for high-networth investors can all help improve investors’ after-tax portfolio performance.
The unloved bull market: Richard Bernstein on the U.S. equity rally
Richard Bernstein, June 2013
The U.S. equity market has seen quite a rally in 2013. Both the Dow Jones Industrial Average and the S&P 500 Index eclipsed their 2007 record closing highs in the first quarter and are up 17.4% and 16.7%, respectively, year-to-date as of May 15, 2013. Additionally, the S&P 500 has risen more than 140% from its bear market low on March 9, 2009, having done so against a slowgrowth economic backdrop.1
1 Source: Factset. The Dow Jones Industrial Average is a price-weighted average of 30 U.S. blue-chip stocks traded on the New York Stock Exchange and the NASDAQ. The S&P 500 Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. Index performance is historical and not indicative of future results. It is not possible to invest directly in an index.