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The U.S. Debt Challenge: A Few Thoughts on Our National Debt and Deficits

Fueled by rising interest costs and mandatory spending, the $1.9 trillion deficit in 2024 is projected to climb to $2.8 trillion per year by 2034. Our fixed income team discusses what these fiscal challenges could mean for the economy and markets.

Monthly Market Update - September 2024

Americans with a stake in the stock market were once again rewarded in August, with the S&P 500 Index rising 2.4% for a year-to-date return of 19.5%. Bond investors were also pleased as medium and long-term interest rates dropped. Unlike much of the trailing year, stock returns were broad, outperforming results for the market-leading “Magnificent 7” stocks. These returns contributed to a boost in consumer confidence in August. Additionally, Fed Chairman Powell basically announced a pivot to lower rates beginning in September.

Monthly Market Update - August 2024

July was a month of twists and turns -- and not just in presidential politics. Within the markets, the byword was rotation as large tech faltered and small and mid cap stocks revived. It took a final day rally to push the S&P 500 positive, rising 1.2% for the month, bringing the year-to-date return to 16.7%. After years of underperformance, small stocks leaped to the head of the class, with the Russell 2000 rising 10.2%, constituting the bulk of the index’s 12.1% year-to-date advance.

2024 Mid-Year U.S. Equity Letter from Haruki Toyama

Understanding the Complexities of Insurance Investment Management

Just as with individual investors, pension plans, non-profits and other institutions, insurance companies turn to the capital markets to pursue and secure their future financial stability and viability.

2023 Year-End U.S. Equity Letter from Haruki Toyama

The U.S. stock market had a good year in 2023. The S&P 500 Index recovered all of its 2022 decline, and slightly more, ending the year up 26.3%. The story of the year was the glaring concentration of returns in the Magnificent Seven, as the press has dubbed them. These seven megacap technology stocks returned an average of 111.7% for the year, accounting for well over half of the total return of the S&P 500.

2023 Mid-Year U.S. Equity Letter from Haruki Toyama

We are halfway through 2023, and so far the U.S. stock market has continued its rebound from last year’s decline. The S&P 500 Index remains about 5% below its peak reached in January of 2022, so it hasn’t quite yet recovered all of its lost value, but as usual, the market averages don’t always tell the whole story.

2022 Year-End U.S. Equity Letter from Haruki Toyama

The U.S. stock market suffered one of the worst annual losses in its history, with the S&P 500, Russell Midcap, and Russell 2000 declining -18.11, -17.32%, and -20.44%, respectively. Headlines point to many culprits, but higher interest rates dominate the conversation. We’ve had four decades of declining interest rates; it’s no coincidence that with rates rising sharply this past year, the S&P 500 Index had its third worst year in the past 40 years.