Economic 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%).
(more…)Read MoreYear-End 2023 Planning Opportunity Checklist
Now is a good time to review year-end tax strategies and plan for the year ahead. Below are some items that should be completed or reviewed before year end:
(more…)Read MoreWESCAP Q3 Quarterly Commentary: Stock Returns, Bond Yields, and Interest Rates
Portfolio results for the third quarter of 2023 were generally negative for stocks and for long-term bonds. For the quarter, the S&P 500, EAFE index (foreign stocks), and long-term Treasury bonds (Bloomberg/Barclays 20+ Yrs) returned -3.3%, -4.1%, and -13.0%, respectively. Small cap stocks and real estate stocks (REITs) had losses greater than the S&P 500 last quarter due to greater sensitivity to higher interest rates.
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