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Now that the calendar has officially turned to 2024, we have entered Wall Street’s version of the Olympics. Every 4 years, Wall Street pundits and political strategists present on television, podcasts, and other forms of media to breathlessly tell investors what it will mean for their portfolios if the Republican or Democratic candidate for president […]
Over the past 18 months or so, much has been written about the Federal Reserve interest rate increases that have been implemented to control inflation. Most of the print and television coverage of these rate increases has focused on the possible negative ramifications of this policy. Indeed, the impact of the total increase of 525 […]
After enduring an 18.6% decline in the S&P 500 Index (“Index”) during 2022, one would expect many on Wall Street to be more enthusiastic about the 16.9% gain in the Index during the first half of 2023. However, nearly all the gains in the Index through June 30th are due to the outsized (and likely […]
We are often asked by people: “Why should I work with an advisor like Compass when I can buy mutual funds or other investment vehicles on my own?” While this is a fair question, we at Compass believe there are a variety of benefits to working with a professional advisor and taking advantage of the […]
The week of March 6th saw Silicon Valley Bank (SVB), a regional bank based in northern California, thrust into the headlines as the third largest bank failure in American history. How did a bank that appeared to be functioning normally on Monday need to be seized by the government on Friday? The answer to this […]
Without question, 2022 has been a challenging year for equity investors. Coming into the year, the S&P 500 Index had doubled over the prior three-year period from 2019–2021. Except for a sharp 6-week decline during the onset of COVID-19 in early 2020, the market enjoyed ideal conditions: low interest rates, low inflation, and excess liquidity. These […]
One of the first lessons taught to every aspiring financial services professional is “when interest rates rise, bond prices decline.” So far in 2022, we have seen this happen rapidly. The Federal Reserve has already raised short-term interest rates to 2.25% this year, up from almost 0% at the beginning of the year. More importantly […]
Kicking off 2022, the Federal Reserve has adjusted its policy by raising rates and ending asset purchases to combat inflation. At the same time, the economy is facing other challenges, including the lingering pandemic, the Russian/Ukraine war, rising oil prices, and continued frozen global supply chains. As a result, this year is the 5th poorest […]
As of November 2021, Compass surpassed the $2 billion milestone for assets under management. We are delighted to have achieved this because it represents 33 years of successful effort by our Compass team. More importantly, it is a significant reflection of the trust our clients have placed in us over this time period. Thank you, […]
In less than one month, Americans will head to the polls to elect the next president. While the outcome is unknown, one thing is certain—there will be a steady stream of opinions from pundits and prognosticators about how the election will impact the market.
Over the course of 2020 investors experienced new market highs (February), new market lows (March), and then a return to new market highs (November). Investors also witnessed a global pandemic, national civil unrest in response to the death of George Floyd, many workers transitioning to work-from-home, and a presidential election.
There is an old adage: “People don’t plan to fail, they just fail to plan.” Planning for a transition is an important service we provide at Compass. Many advisory firms have attempted to become comprehensive “financial planners,” providing one-stop legal and tax-related advice to their clients, as well as selling them insurance and expensive investment products and services.
Interest rates continued to surge as the strong January jobs and wages report was released on February 2. This rate surge indicated that robust global economic data is helping investors to overcome longstanding doubts about the staying power of the post-crisis recovery.
Interest rates continued to surge as the strong January jobs and wages report was released on February 2. This rate surge indicated that robust global economic data is helping investors to overcome longstanding doubts about the staying power of the post-crisis recovery.
Effective June 9, after years of battling Wall Street and the insurance industry, the Department of Labor’s (DOL) Fiduciary Rule expands the definition of fiduciary under the Employee Retirement Income Security Act of 1974 (“ERISA”) and ...
Personalized service and quality investment management have been cornerstones of Compass Capital Management since its inception 28 years ago. As Compass continues to grow, we are delighted to announce that Phil Stern has joined our firm to build upon that foundation.
Over the past eighteen months, the performance of the S&P 500 Index has been modestly positive (primarily as a result of dividends) as ongoing news persists of slower growth in China, suspicious global central bank policies, the strong U.S. dollar and the sharp decline in oil prices.
Investors looking to commit capital to the stock market have two primary options. They may choose either a pooled investment (e.g. mutual fund) or direct stock ownership. Both options appear to be equal at face value.
Many market pundits continue to declare that higher interest rates are coming, predicting bad news for fixed income investors. As Compass bond investors already know, higher rates (yields) mean lower prices for most already-issued bonds (but for those holding bonds to maturity, like we do, this declaration is a moot point).
Since mid-2014, the U.S. trade-weighted broad dollar index1 has appreciated nearly 20%2, with the largest gains against the Japanese yen, Mexican peso, Canadian dollar and the Euro. Currency movements have always been complicated both in their causes and consequences.
Just nine months ago, U.S. stock indexes were hitting all-time highs as the bull market was passing its six year anniversary (from the March 2009 lows). Since then, the Federal Reserve has begun raising short-term interest rates, oil has continued its precipitous retreat (from its recent high, oil is down 68%) and ...
As the equity markets continue to reach new highs (positive 200%1 from 2009 lows) and the current yield on the 10-year U.S. Treasury hovering around 2.35%1, a number of highly-regarded publications have implied that stocks continue to be the only reasonable place to invest.
Passive investing or stock market indexing—investing in a fund which closely tracks a well-known index—has been one of the most popular trends in history. Little surprise then, that during 2014, investors pulled $98 billion out of active U.S. mutual funds while ...
As the equity markets advance to new highs (+145% from their March 2009 low) and bonds appear stodgy by comparison, investors have begun to wonder if they should continue to hold bonds in their portfolios while major financial media outlets suggest stocks are the only place to invest.
August 15, 2013 marked our 25th Anniversary. We are delighted to have achieved this because it represents the collective, successful effort by our Compass Team. More importantly, it is a significant reflection of the trust our clients have placed in us over this period.
At the present time, the yield on the 10-year U.S. Treasury note is about 2%...near a historical low. The current assumption that rates must soon rise has many bondholders concerned because when interest rates rise, prices fall for the bonds they already own.
Meet the Compass Investment Team (emphasis on team)! August 15, 2012 will mark the 24th Anniversary of Compass Capital Management. In these days of frequent manager changes and Wall Street (large banks and brokers) bankruptcies, Compass is the exception.
The 57% decline in the stock market (S&P 500) from October 9, 2007 to March 9, 2009 as well as the collapse of some of America’s largest companies during this time caused many investors to conclude that the “buy and hold” approach to investing is dead.
Our spring 2005 Compass Watch (Volume 17, Number 1) was the first in a series entitled, “Investment Mistakes.” This article* is closely related and seems timely in view of the many investors today who seem to be ignoring risk while pouring money into more speculative energy stocks, hedge funds, etc.
Much has been made of the run-up in U.S. single-family house prices over the last several years. Many advisers and the general public see single-family housing as a great investment; particularly during this period when stock and bond returns have seemed modest by comparison.
Legal disclaimer: This commentary contains the current opinions of Compass Capital Management, Inc., an SEC-registered investment adviser. Such opinions are subject to change without notice as economic and market conditions warrant. This commentary is for general educational purposes only and should not be considered as personalized investment advice or a recommendation of any particular security, strategy or investment product. Certain information contained herein is derived from third-party sources and is believed to be reliable at the time of publication, but is not guaranteed as to accuracy or completeness. Historical performance shall not be relied upon as a predictor of future performance.
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