Investors limit reactionary trades despite equity markets posting their worst month in two years.
April was a hard month for the markets, and the beginning of May has been even more brutal, but investment experts still see room for tempered optimism about the remainder of the year.
The first quarter was busy for investors despite March’s market rally.
Facing some jarring geopolitical events, 401(k) investors reacted with above-normal trading activity during February.
On average, 0.017% of balances were traded daily in January despite the backdrop of a volatile stock market, according to Alight Solutions.
With markets off to a choppy start in 2022 and rate hikes on the horizon, inflation is top of mind for many investors, as demonstrated by a D.A. Davidson survey.
One of the key lessons to remember in multi-asset investing is that there is no free lunch, and those who benefit from taking the most risk are likely to feel the most pain when market conditions sour.
On average, just 0.01% of balances were traded daily in December, which is in line with the monthly average for the past year, according to Alight Solutions.
Among the takeaways one investment expert has from the year is that structural forces have a large influence on interest rates and may keep them relatively low despite the efforts of policymakers.
Two-thirds of days during the month saw net trading activity favor equity funds over fixed income, according to the Alight Solutions 401(k) Index.
They see plenty of growth potential in a market they say is driven and distorted by fiscal and monetary policies—a situation which could spell trouble for unprepared individual investors.
Despite substantial market volatility, third-quarter trading volumes in self-directed brokerage accounts brokered by Charles Schwab were similar to those seen a year ago.
Historically, investors tended to consider ESG factors either to increase risk-adjusted returns (doing well) or to achieve sustainable outcomes (doing good). A new analysis suggests there is no meaningful trade-off between the two when investing in public markets.
Some capital markets experts say the ‘transitory message’ on inflation from the U.S. Federal Reserve is beginning to overstay its welcome.
As some investment analysts argue inflation has peaked, and that it should soon return to an average annual rate in line with recent history, others are focused on the effects of growing wage pressure and the competition for labor.
Results of a new analysis published by Dimensional Fund Advisors suggest that embracing higher equity exposures prior to and during retirement is an inadequate tool to manage longevity risk.
The latest update of the Alight Solutions 401(k) Index shows the average asset allocation to equities rose in June to the highest level in 20 years. The index shows investors were content to watch their balances rise, as there were no days of above-normal trading activity. Average net trading activity was 0.009% of 401(k) balances, down from 0.011% in May.
Millions of jobs have returned as the country has reopened, thanks to the positive impact of the COVID-19 vaccination program, but as the U.S. enters the second half of the year, sources say some ‘problems of success’ have emerged.