The markets closed the year down as most asset classes continued to perform poorly. For the year, the S&P 500 declined about 18%. The bond market also closed the year down (the Bloomberg U.S. Aggregate Bond index fell about 13%) as the Federal Reserve (Fed) raised interest rates and reduced its balance sheet (i.e., not reinvesting the proceeds of maturing securities)...
There was a record volume of special purpose acquisition company (SPAC) initial public offerings (IPOs) in the first quarter of 2021, but questions remain about the sustainability of the trend. The record volume was most likely a result of the stock market surge over the last 12 months or so—many private companies were looking to access the public markets quickly. However, the SPAC growth slowed in April, at least in part due to the SEC. SPAC IPOs totaled almost 300 in the first quarter but fell to 10 in April…
Many people struggle to understand everyday financial issues; however, this problem is particularly acute for those without college degrees or professional jobs. Part of our work at Eagle Ridge involves an educational component as we help clients understand how to best navigate their unique financial challenges. We wanted to broaden our work in the financial literacy space beyond our client base to assist those with much less access to resources. Therefore, over the past year, we searched for charities in Fairfield or Westchester County to partner with to provide financial…
We recently purchased Verizon (VZ) in client accounts. VZ is a telecommunications company offering wireless services to consumers and businesses in the U.S. The company also provides wireline services over its fiber-optic network as well as a traditional copper-based network. VZ’s growth is driven by the wireless service, namely how quickly it can grow its user base and increase the revenue per user. VZ is competing with AT&T (T) and T-Mobile (TMUS) for wireless customers in this saturated market. The wireless carriers, specifically VZ and T, started to rise on…
The markets once again had a down quarter. Both the S&P 500 and the Bloomberg Aggregate Bond Index were down almost 5%. This is the same pattern that occurred during the first two quarters. It is a frustrating investment environment, exemplified by the 15% decline in the bond market through September.
