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.

Q3 Market Recap: The Federal Reserve Past and Present

The longest bull market in history continues to run through Q3. 

Investors remain focused on three key areas: trade conflict, slowing global economic growth and the Federal Reserve monetary policy. Under the successive leadership of three chairs, the Fed has fostered the longest economic expansion in U.S. history.

Read the Q3 Market Recap to learn more about the recent history of bull markets, as well as the Q3 market drivers. Also included is an overview of key year-end notices plan sponsors may need to provide to employees according to IRS and DOL regulations.

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 Market Recap: Powell's "Porridge"

The Fed defines success for monetary policy as when the economy is like Goldilocks’ porridge — not too hot and not too cold. Investors have enjoyed Fed Chair Jerome Powell’s “Porridge” several times in 2019 as we ushered in the longest bull market in history.

Read the Q2 Market Recap to learn more about the porridge-like conditions during Q2. Also included is update on the current buzz around a Multiple Employer Plan (MEP).

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: Equities deliver a convincing head fake

The fourth quarter of 2018 ended with significant market volatility. Yet, the U.S. equity performance was in recovery mode in the first quarter of 2019.

In March, we witnessed the ten-year anniversary of the bull market for equities, making it the longest bull market on record. In hindsight, the sharp sell-off in the fourth quarter looks like a head fake for investors.

Read the Q1 Market Recap to learn more about the dramatic recovery for the start of 2019. Also included is a legislative and regulatory update on what's happening in the retirement market.

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 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.

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.

Doing Good While Doing Well

Plan fiduciaries are seeing increased interest in social, or impact, investing as an option in their plan offerings. We have witnessed the evolution of socially responsible investing (SRI) from being just a consideration of avoiding companies that profit from “sin” (alcohol, tobacco, gambling, firearms, etc.) to a holistic focus on environmental, social, and governance (ESG) factors as integral to an investment strategy.

To be good stewards of capital, advanced knowledge of the benefits and significance of sustainability in investing―aligning with values―is essential. It is especially important to the millennial generation, and is consistent with the importance many institutions place on social responsibility as part of their greater mission.

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.

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.