August Market Recap Major Benchmark Returns in August 2024 August’s market sell-off may have been scary, but the recovery was spectacular. Though the sell-off was sparked by a swift decline in Japanese stocks, investors were also spooked by weak economic data, disappointing corporate earnings, and concerns that the Fed may be too late in its […]
Retiring LIBOR and the Quest for a Replacement Rate
Since 1986, the London Interbank Offered Rate (LIBOR) has functioned as the global benchmark for adjustable-rate loans. Lenders set or reset rates on loans periodically according to the LIBOR rates. The rates are based on what banks forecast they would charge another bank to lend funds. Eighteen international banks submit rates each day and after […]
Will This Bull Ever Tire? The Effect of Rising Yields on Asset Allocation
For the first time in a decade, the 2-year Treasury yield has met and exceeded the S&P 500 dividend yield (see Figure 1). Why is this significant? It is significant because as bond yields edge up, fixed income allocations become more attractive to investors. Thus, stock returns can be dampened by what appears to be a […]
