I wanted to share this story as it is becoming more and more common. When I conduct 401(k) and retirement plan education meetings, the most frequent questions are:
Rising bond yields have begun to weigh on equities. Stock indices fell while bond yields continued to climb with the 10‐year U.S. Treasury yield closing the week at 1.34%, up from 1.2% last week and just 0.9% at the start of 2021.
Stocks advanced again this week with the S&P 500 up another +1.2% and closing at its 10th record high of the year. Small company stocks performed even better, gaining +2.5% to put them up nearly +16% in 2021.
Could the key to a successful financial wellness program for employees really be as simple as the lyrics to a Bruce Springsteen song? Maybe so.
January’s GameStop craze dissipated and equity volatility plunged as investors refocused on the potential for a big stimulus package, encouraging earnings results, and improving Covid‐19 vaccination and hospitalization data.
S&P 500 drops, volatility pops. After starting the month strong, global equity markets mostly gave up their gains as the month ended. The last week of January was the worst week for the S&P 500 since October and January was its first negative month in since October. Volatility (VIX) jumped from 21 to 37.
Many of us are old enough to remember when the Department of Labor’s (DOL’s) top three initiatives seemed to be timeliness of contributions, timeliness of contributions, and, well, timeliness of contributions. Of course, that issue inherently relates to current employees who are actively participating in a plan.
Don’t ever say, “It won’t happen to me.” We are all at risk and the stakes are high – both for your personal and financial well-being and for our Firm’s standing and reputation. Cybersecurity is everyone’s responsibility. By following the tips below and remaining vigilant, you are doing your part to protect yourself and others.
A mania around heavily‐shorted stocks, weaker than expected GDP data, and disappointing new vaccine results weighed on global stocks this week. Most major indices fell ‐3to‐4%, the worst week since October. The Cboe Volatility Index (VIX) spiked to 33.1 from 21.9 last Friday. However, bonds weren’t bothered much by all the stock commotion as the 10‐year U.S. Treasury yield was down two basis point to 1.07% (though it fell to 1% earlier in the week).
2020 has taught us a lot. Difficult times have a tendency to do that. We’ve all recognized that there are things we should never take for granted, such as family, friends, co-workers, our jobs and our home. Even mundane tasks like grocery shopping and haircuts have become a dystopian prospect.