Q3 Market Recap: Investor Optimism Amid the Pandemic

The U.S. equity market recovery that began on March 24 continued in earnest in Q3. However, the Index performance masks significant underperformance in the industries that continue to be impacted by the pandemic. Any failure of the presidential election process to determine a clear winner will likely provide fuel for near-term volatility. 

Read the Q3 Market Recap for a brief review of the market performance and chart shows the average annualized return for the S&P 500 Index under the presidential terms dating back to Franklin Roosevelt. Also included is an article describing how Strategic Benefit Services has been Staying Connected to Meet Retirement Goals in spite of the pandemic.

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by email or by calling (855) 882-9177.

Q2 Market Recap: Extraordinary Times - Extraordinary Markets

With the majority of Americans sheltering in place at the beginning of the second quarter, what reasonable person would have forecast that the S&P 500 Index would have appreciated 20.54%, for its best quarterly performance since its inception in 1957?

The extraordinary turnaround from the February-March bear market restored most of the negative returns investors suffered in Q1.

Read the Q2 Market Recap for a brief review of the market performance. Also included is a summary of IRS guidance impacting retirement plan relief under the CARES Act.

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by email or by calling (855) 882-9177.

Q4 Market Recap: “Bookends” of volatility in 2018

The year 2018 ended as it began, with significant market volatility. Some market analysts believe the combination of algorithmic trading and the elimination of the uptick rule may be contributing factors. Ironically, some volatility is a necessary evil for investors who view a stake in equities as essential to reaching their longterm goals.

Read the Q4 Market Recap to learn more about the individual periods of market volatility throughout 2018 and the root cause behind them.

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Q3 Market Recap: Hear the U.S. Economy Roar!

But Listen to the Whispers of Caution, Too

The U.S. economy’s robust growth continues to lead global expansion, but there are reasons for investor caution moving forward as interest rates continue to rise incrementally, concern about inflation grows, and market volatility increases.

The Q3 Market Recap shows that the global economic expansion continues, although at a slightly lowered pace. Last quarter, the Market Recap covered the strength in the leading economic indicators. Positive stock performance was underpinned by solid economic data again in the third quarter.

As the U.S. economy continues its remarkable recovery from the recession a decade ago, investors are paying attention to all of these global and domestic activities that may influence how long and how strong this recovery will be going forward.

Read the Q3 Market Recap to learn more. If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

What’s Happening in the Retirement Market?

Rob Peter to Pay Paul?

Typically this idiom has had a negative connotation, but the Internal Revenue Service’s (IRS) August 17 Private Letter Ruling approving the amendment of Abbott Lab’s 401(k) to include a student loan repayment benefit implies there might be circumstances when it’s not only ok “to take from one source to give to another,” but financially savvy.

The IRS gave its blessing to Abbott Lab’s making non-elective contributions to the 401(k) plan based on an employee’s total student loan repayments made outside the plan. These employer contributions would be in lieu of the matching contributions that would otherwise be made to the plan had the employee made elective contributions. However, the employer may provide a year end true-up match to ensure that if there are pay periods where the employee fails to make student loan repayments, but opts to make elective contributions during the same period, the employee would be eligible to receive a true-up matching contribution.

Q2 Market Recap: Signal-to-Noise Ratio

The signal-to-noise ratio is an electrical engineering term used to express the clarity of audio. Signal-to-noise has a financial application as well. Currently, investors need to separate the signal from the noise to understand why the stock market continues its bull run despite disturbing headlines on the domestic and global fronts.

The Q2 Market Recap identifies the signals that are driving the market higher and therefore merit investors’ attention. We define a signal as information that is used by successful investors for valuing securities and making investment decisions (buy, sell, or hold). These signals are always relevant for investors making retirement savings decisions. We define noise as negative information that falsely appears relevant to investment decisions. Noise adds to market volatility, but ultimately fails to negatively impact the signals.

Read the Q2 Market Recap to learn more. If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Q1 Market Recap: Taxes, Tariffs, and Tech

After nine consecutive quarters of gains, the S&P 500 lost 0.76% in the first quarter of 2018. The 0.76% loss masked a spike in volatility driven by the reduction in corporate tax rates in the Tax Cut and Jobs Act, stiff tariffs on imported steel and aluminum, and the prospect of new government regulation of technology firms.

Read the Q1 Retirement Market Recap to learn more about the 1st quarter market volatility. Also included are tips on managing defined benefit plans in the feature on "Can You Invest Your Way to Plan Termination?"

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Q3 Retirement Market Recap - Stocks Advance for the Eighth Consecutive Quarter

U.S. stocks, as measured by the S&P 500 Index, extended their gains for the eighth consecutive quarter, with the Index up 4.5%. The Index is up 18.6% for the one-year period through September 30, 2017.

The market shrugged off devastating hurricanes and political turmoil in Washington. In fact, the hurricanes stimulated demand for replacement cars and trucks, providing a welcome sales boost to that industry.

Read the Q3 Retirement Market Recap to learn more about the 3rd quarter stocks and bonds performance, and also review tips on "Understanding Stable Value Funds".

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Q2 Retirement Market Recap - Stocks and Bonds Advance Again in the 2nd Quarter

As of June 30, 2017 U.S. equities advanced for the seventh consecutive quarter, with the S&P 500 Index gaining 3.09% in the second quarter and 9.34% year to date. With the economic expansion and the bull market for stocks both in their eighth year, it is understandable that many investors are nervous about a market correction. Equity prices are reflecting a very solid U.S. economy, operating at full potential and full employment. Most of the economic data followed by investors has been positive:

• surges in Leading Economic Indicators, and the Small Business Optimism Index;
• accelerating global Gross Domestic Product (GDP) growth forecast;
• rising housing starts;
• strong Purchasing Managers Indexes (manufacturing and service sectors), strong hiring, declining unemployment, record low weekly unemployment claims and high quit rate;
• low inflation;
• strong consumer data: growth in average hourly earnings/real disposable personal income, household balance sheets, savings rates, credit scores, and record low household financial
• obligations ratio; and
• strong retail sales.

Read the Q2 Retirement Market Recap to learn more about the 2nd quarter stocks and bonds performance, and also review tips on "Understanding Non-Governmental 457(b) and 457(f) Plans".

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Q1 Market Recap - Yin and Yang

Last quarter we reported to you that investors turned decidedly bullish toward equities after the U.S. election. That trend continued in the first quarter of 2017, with the S&P 500 Index hitting an all-time high of 2395.96 on March 1, immediately following President Trump’s conciliatory speech to Congress. That represented a 12% advance in the Index from pre-election levels. The Index closed the quarter off the all-time high, at 2362.72, as investors re-evaluated the probability of President Trump and Congress’ ability to deliver on tax cuts and increased federal spending on infrastructure. The S&P 500 returned a very strong 6.07% in the first quarter—the sixth consecutive quarter of positive returns for the Index.

In Chinese philosophy, yin and yang describe how seemingly opposite or contrary forces may actually be complementary, interconnected, and how they may give rise to each other as they interrelate. The U.S. has entered a period where proposed policy or political risks, the "yin" have moved to the forefront in driving market volatility, the "yang."

Read the Q1 Retirement Market Recap to learn more about the "yin and yang" forces affecting the U.S. market performance, and also review tips on "Understanding Your Retirement Plan Fee Methodology".

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Q4 Retirement Market Recap - Post-Election Rally

The 2016 U.S. general election was an unusually dramatic event for investors, most of whom were expecting the Democrats to hold the White House. Investors reacted favorably to the election results, with the S&P 500 closing at a new record high on November 22, and continuing to advance through the end of the quarter.

Read the Q4 Retirement Market Recap to learn more about the impact of the 2016 election. Also included is an update on litigation targeting non-profit retirement plans.

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Q3 Retirement Market Recap

Stock investors experienced the first correction in nearly four years in August when the S&P 500 declined 12.5% from its recent high. So, what triggered this one?

Read the Q3 Retirement Market Recap to review the key market drivers for the third quarter financial performance. The SBS Retirement Market Recap provides a summary of market and economic events which have influenced the financial markets in the past quarter.

Should you have questions about this Market Recap, or for information on how Strategic Benefit Services can enhance your organization's retirement offering, please contact us by calling (855) 882-9177 or email us at sbs@hanys.org.

Q2 RETIREMENT MARKET RECAP

The 1972 Stealers Wheel song, “Stuck in the Middle with You” comes to mind when you look at the U.S. economy and stock market in the second quarter of 2015. Read the Q2 Retirement Market Recap to review the key market drivers for the second quarter financial performance.

The SBS Retirement Market Recap provides a summary of market and economic events which have influenced the financial markets in the past quarter. SBS Retirement Market Recap also includes a feature segment called “What’s Happening in the Retirement Market?” which selects a notable industry event to highlight for the quarter.

Should you have questions about this Market Recap, or for information on how Strategic Benefit Services can enhance your organization's retirement offering, please get in touch by calling (855) 882-9177 or email us at sbs@hanys.org.