Stocks rose more than 30% in the past year. Are you putting that in perspective for clients when you send them their quarterly portfolio performance reports?
“Only investors setting a long-term strategy based on their personal risk tolerance could have participated in the unlikely bull-run. It began three years ago, after the worst financial crisis in decades. Only investors broadly diversifying, setting an investment policy, and maintaining a long-term commitment to stocks and other major asset classes could have benefited from this bull-market.”“Slow growth has characterized the rebound since the global financial crisis. That has led the Federal Reserve to keep interest rates low to provide liquidity to the economy. Interest rates have stayed at historic lows for months and the Fed has said it expects to continue its easy monetary policy into 2014. The yield on the 10-Year U.S. Treasury Note has stayed low and that has made stocks attractive relative to bonds.”“Slow growth, at best, for America seems likely, but Europe is in recession and is likely to stay so through much of 2013, as growth is slowing markedly in China. The U.S., which started the global financial crisis, is now the world’s best hope to continue to lead the recovery, and an accommodative Federal Reserve is likely to continue to provide the same easy money policy that helped fuel the stock rally of the past three years.”