Stocks Rebound in 2Q20; Fixed Income Sees More Modest Returns
U.S. stocks posted double-digit returns, with big gains in global ex-U.S. markets. Treasuries were range-bound during the quarter and most fixed income indices posted solid but not spectacular returns
What Investors Should Know About This Year’s Russell Reconstitution
Every year, FTSE Russell reconstitutes its U.S.-focused family of indices to more accurately reflect current market conditions. Although initial public offerings can be added to these indices on a quarterly basis, this annual refresh is a much more comprehensive effort with significantly greater impact on the market. Changes in market capitalization, sector weightings, and style […]
Pandemic Fears Roil Equities Across the Board
U.S. stocks The S&P 500 Index plunged 19.6% in the first quarter, its worst quarterly return since the Global Financial Crisis. After falling more than 30% from peak to trough in just a few weeks, the Index rallied 20% going into quarter-end as investors were heartened by the prospect of a $2 trillion stimulus package. […]
Staying Calm Amid Turbulent Markets
Market volatility spiked in the latter half of February and has remained elevated, driven by the spread of the coronavirus outside of China.
Behind Our 2020-2029 Capital Market Assumptions
Callan develops long-term capital market assumptions at the start of each year, detailing our expectations for return, volatility, and correlation for broad asset classes. These projections represent our best thinking regarding a longer-term outlook and are critical for strategic planning as our investor clients set investment expectations over five-year, ten-year, and longer time horizons. Our […]
Impact of the Coronavirus on Markets: The Long-Term View
Markets continue to be roiled by the worsening news of the coronavirus outbreak around the world. The steep decline of the past week occurred more than a month after news of the virus first surfaced, as investors initially priced-in virus containment to China. But new reports of the virus spreading to 48 countries dimmed hopes […]
Strong Quarter Caps an Even Stronger Year
2019 was a remarkable year for the financial markets; here I break down results for the major asset classes: Equity Markets The S&P 500 Index rose 9.1% in the fourth quarter, bringing its year-to-date result to a whopping 31.5%, the best calendar year return since 2013 and capping a decade of strong performance. Small cap […]
2019—A Surprisingly Lofty End to the Decade
From my post a year ago: “As widely expected … the Federal Open Market Committee (FOMC) voted unanimously to increase its federal funds rate target by 25 bps, bringing it to 2.25%–2.50%. … the year-end read of fed funds futures prices indicated a nearly 90% probability of no Fed hikes in 2019. … the FOMC also reduced […]
Mostly Strong Gains Amid Geopolitical Uncertainty
Equity Markets The S&P 500 gained 1.7% in the third quarter, and 20.6% for the year to date. However, returns were mixed across sectors. Utilities (+9.3%) and Real Estate (+7.7%) both benefited from lower interest rates. Gains for both sectors are approaching 30% on a year-to-date basis. Energy, hurt by falling oil prices, lost 6.3% […]
How We Developed Our 2019-2028 Capital Market Projections
View PDF Callan develops long-term capital market projections at the start of each year, detailing our expectations for return, volatility, and correlation for broad asset classes. These projections represent our best thinking regarding a longer-term outlook and are critical for strategic planning as our investor clients set investment expectations over five-year, ten-year, and longer time […]