Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

1st Quarter | 2021

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

When you go to a restaurant (remember those?), you know if you had a good meal. And you know if the service is above average and deserving of a larger tip than usual. Your five senses give you all the answers. But what about your investment manager? How do you know if he or she or they are doing a good job of managing your investments for you? The easy answer is, “Look at their performance.”

Don’t let your heart rule your investments

This week, I want to talk about a well-documented pattern of investor behavior that does not serve their best interests: letting emotions rule investment decisions. We originally posted a version of this article last year just before the COVID crash.

The markets were up last week as we closed out the first quarter of the year. The tech-dominated NASDAQ Composite gained 2.60%, the Russell 2000 was up 1.49%, the S&P 500 gained 1.41%, and the Dow Jones Industrial Average rose 0.24%. The 10-year Treasury bond yield rose 5 basis points to 1.72%, though bonds as an asset class were largely up for the week. Spot gold closed at $1,728.87 for the week, down 0.19%.

Major U.S. indexes ended mixed last week. The S&P 500 increased by 1.57%, the Dow Jones Industrial Average was up 1.36%, the NASDAQ Composite was down 0.58%, and the Russell 2000 small-capitalization index lost 2.88%. The 10-year Treasury bond yield fell 4 basis points to 1.68%, as Treasury bonds rose for the week. Last week, spot gold closed at $1,732.52, down 0.73%.

The importance of being “money smart”

Did you know that April is Financial Literacy Month? And that April 10–17, 2021, is Money Smart Week? Financial Literacy Month was designated officially by the United States Senate in 2004 via Resolution 316, during the administration of George W. Bush. (Interestingly, Barbara Bush was passionate about many literacy causes and started the Barbara Bush Foundation for Family Literacy in 1989.)