Advice is one thing. Education is another. Welcome to our area dedicated to highlighting Sensenig Capital’s perspective on wealth management. You’ll find articles designed to inform and enlighten. Spend time browsing through the topics to learn more about our approach and what we believe.
A balanced global investment strategy may help mitigate the longer-term impact of negative events on disciplined investors. The chart below shows performance of a balanced investment strategy following a few historical crises. Each crisis is labeled with the month and year that it occurred or peaked. The subsequent one-, three-, and five-year cumulative returns start from the first day of the month following each crisis.
Although a global investment strategy would have suffered losses immediately following most events, the financial markets...
With interest rates near historical lows, some investors may be anxious about a possible rate climb and its potential impact on their fixed income investments. Rising interest rates typically cause existing bonds to lose value. While investors might hold short-term instruments to manage this risk, an interest rate decline could spoil this strategy by forcing investors to reinvest in lower yields when their short-term instruments mature.
Rate movements in either direction affect portfolio returns. This is true in any market environment,...
Weston Wellington – Vice President, Dimensional Fund Advisors
Equity investors around the world had a disappointing year in 2011 as thirty-seven out of forty-five markets tracked by MSCI posted negative returns. The US did well on a relative basis and was the only major market to achieve a positive total return, although the margin of victory was slim. Total return for the S&P 500 Index was 2.11%, and the positive result was a function of reinvested dividends—the index itself finished the year slightly below where it...
The past year reminded investors that they should hope for the best, prepare for the worst, and be thankful when reality does not match their fears. Investors entered 2011 with hopes that the world economy would continue recovering from a long and painful deleveraging process. Equity markets had posted two straight years of positive performance, central banks remained committed to pro-growth monetary policy, and major developed nations were focused on reducing debt.
By mid-year, however, optimism faded as troubling events around the world...
Forecasting is hard, particularly about the future! You can do all the analysis you want, but events have a way of messing with your assumptions. In fact, of all the forecasts ever made, the only one really worth counting on is that things change.
To help put things into perspective we share a recent piece by Jim Parker of Dimensional Fund Advisors. Please click here to read on.
For more information on our firm and how we work holistically with our clients to help them achieve their financial goals please click...
Perspectives
Advice is one thing. Education is another. Welcome to our area dedicated to highlighting Sensenig Capital’s perspective on wealth management. You’ll find articles designed to inform and enlighten. Spend time browsing through the topics to learn more about our approach and what we believe.
The Market’s Response to Crisis
Posted by sensenigcapital on Feb 2, 2012
A balanced global investment strategy may help mitigate the longer-term impact of negative events on disciplined investors. The chart below shows performance of a balanced investment strategy following a few historical crises. Each crisis is labeled with the month and year that it occurred or peaked. The subsequent one-, three-, and five-year cumulative returns start from the first day of the month following each crisis. Although a global investment strategy would have suffered losses immediately following most events, the financial markets...
read moreFixed Income Risk in Your Portfolio
Posted by sensenigcapital on Jan 24, 2012
With interest rates near historical lows, some investors may be anxious about a possible rate climb and its potential impact on their fixed income investments. Rising interest rates typically cause existing bonds to lose value. While investors might hold short-term instruments to manage this risk, an interest rate decline could spoil this strategy by forcing investors to reinvest in lower yields when their short-term instruments mature. Rate movements in either direction affect portfolio returns. This is true in any market environment,...
read moreYear-End Review
Posted by sensenigcapital on Jan 10, 2012
Weston Wellington – Vice President, Dimensional Fund Advisors Equity investors around the world had a disappointing year in 2011 as thirty-seven out of forty-five markets tracked by MSCI posted negative returns. The US did well on a relative basis and was the only major market to achieve a positive total return, although the margin of victory was slim. Total return for the S&P 500 Index was 2.11%, and the positive result was a function of reinvested dividends—the index itself finished the year slightly below where it...
read more2011 Review: Economy & Markets
Posted by sensenigcapital on Jan 9, 2012
The past year reminded investors that they should hope for the best, prepare for the worst, and be thankful when reality does not match their fears. Investors entered 2011 with hopes that the world economy would continue recovering from a long and painful deleveraging process. Equity markets had posted two straight years of positive performance, central banks remained committed to pro-growth monetary policy, and major developed nations were focused on reducing debt. By mid-year, however, optimism faded as troubling events around the world...
read moreThings Change
Posted by sensenigcapital on Dec 22, 2011
Forecasting is hard, particularly about the future! You can do all the analysis you want, but events have a way of messing with your assumptions. In fact, of all the forecasts ever made, the only one really worth counting on is that things change. To help put things into perspective we share a recent piece by Jim Parker of Dimensional Fund Advisors. Please click here to read on. For more information on our firm and how we work holistically with our clients to help them achieve their financial goals please click...
read more