WESCAP Q1 2024 Quarterly Commentary: Positive Stock Returns, High Interest Rates, and Recession Fears
Portfolio results for the first quarter of 2024 were generally positive for global stocks. For the quarter, the S&P 500, Russell 2000 (smaller U.S. firms), EAFE index (foreign stocks), and MSCI emerging markets stocks returned +10.6%, +5.2%, +5.8%, and +2.4%, respectively. Most foreign currencies depreciated over the quarter, which accounts for much of the lower returns of foreign based assets. Nevertheless, this helps foreign companies gain future market share over their U.S. counterparts. The EAFE (foreign stocks) currency-hedged index returned 10.5% for the quarter, close to matching the S&P 500. Many WESCAP-selected foreign stock funds employ currency hedging, which proved to be of value the last quarter and for the last few years.
(more…)Read MoreCybersecurity and Protecting your Assets from Thieves Online
At WESCAP, we are constantly thinking about the security of your assets. This includes avoiding permanent investment losses, as well as avoiding fraud and theft.
(more…)Read MoreEconomic and Investment Outlook for 2024
Will the U.S. experience a recession this year? In this report, we explore the outlook for recession and how stocks, bonds, real estate, and other assets are expected to behave. We discuss how investors should be positioned in 2024.
(more…)Read MoreWESCAP Q4 Quarterly Commentary: Strong Stock Market Returns and Interest Rate Cuts
Portfolio results for the last quarter of 2023 were generally and strongly positive across stocks, bonds, real estate, and most other assets. Strong 2023 gains in U.S. and global stock market indices reduced or in some cases eliminated the large losses experienced in 2022.
(more…)Read MoreDon’t Pay Off Your Mortgage, Immunize it!
Should you lock-in high yields on fixed income assets and immunize your mortgage? A mortgage immunization strategy uses fixed income assets to pay off future mortgage debts. If you have a low interest rate mortgage, you can lock-in higher interest rates on high quality fixed income assets now and earn more on these investments than the interest cost on your mortgage. This is a better strategy than paying off the mortgage. Retirees often think it is wise to pay off their home mortgage early. But this will reduce their long-term net worth and financial security if their mortgage interest cost is low (under 3.5%).
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