article thumbnail

Hold Cash or Invest? History Shows Cash Isn’t King for Long

Darrow Wealth Management

The federal funds rate hasn’t been this high since 2007 when it peaked at 5.25%. Consider your objectives Before making an asset allocation decision, always keep in mind what you’re trying to accomplish. In fact, the Federal Reserve has raised the upper limit federal funds rate by 5% since the beginning of 2022.

article thumbnail

No Pain, No Gain

Investing Caffeine

For long-term stock investors who have reaped the massive +520% rewards from the March 2009 lows, they understand this gargantuan climb was not earned without some rocky times along the way.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Diamonds In The Rough

Brown Advisory

Through conservative, bottom-up analysis, we are taking advantage of current market dynamics to buy attractively priced debt in companies with solid revenues and limited vulnerability to an economic downturn. Debt in well-managed companies positioned to weather an economic slump return nearly three times the 2.3%

Clients 52
article thumbnail

Investment Perspectives | Confidence

Brown Advisory

could fall victim to long-term economic stagnation, similar to the fate that befell Japan starting in the 1990s. Japan’s GDP had grown by an average of more than 5% per year from 1950 to 1989—a true post-War economic miracle. As important, however, is the contrast in how the two countries have dealt with financial or economic crises.

article thumbnail

Investment Perspectives | Confidence

Brown Advisory

could fall victim to long-term economic stagnation, similar to the fate that befell Japan starting in the 1990s. Investors who were active in the late 1980s will recall that asset prices in Japan reached extreme levels as money poured into the country from all over the world, propelled by extraordinary economic growth.

article thumbnail

Market Responses to Fed (in)Action | Weekly Market Commentary | June 20, 2023

James Hendries

As the economy is likely downshifting, investors should take heed that the Federal Reserve’s (Fed) current stance is eerily similar to early 2007. That’s not suggesting another 2008 is coming, but rather highlights how fast the economic environment can change.

article thumbnail

Transcript: Tom Hancock, GMO

The Big Picture

There’s also quantitative metrics that we look at Those have evolved, but always within that capa, that cluster of high returns on investment stability across the economic cycle are consistent and strong balance sheets. And actually Ben Inker is the head of our asset allocation group. We, we call asset allocation at GMO.

Valuation 130