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Auld Lang Syne: Some Things Remain the Same (including Retirement Plan Committee Best Practices)
photo credit Pixabay As 2023 ends and a new year begins, in Scotland’s highlands and lowlands you’re likely to hear the familiar “Auld Lang Syne,” a Scottish expression meaning “old long since.” It’s a tribute to times past or a longing for old times. If you’re a plan sponsor fatigued by the pace of change,…
Read MoreNovember 2023
Summary Investors had plenty of reasons to feel thankful in November. Coming off consecutive losing months, stocks roared back, with global equity returns finishing north of 8%. Bonds followed closely behind, with the Bloomberg Aggregate Index posting its largest monthly return since 1985, buoyed by a stunning rally in interest rates during the second half…
Read MoreThe Power of the PENsion: Have We Stuck the Landing? (Or are we skating on thin ice?)
Earlier this month, the Federal Open Markets Committee (FOMC) unanimously agreed to hold the key federal funds rate in a target range of 5.25% to 5.5%. This short-term benchmark rate has been held steady since July 2023. With the decision to leave the rate unchanged, it might have seemed we’d stuck the landing—the economy’s soft landing…
Read MoreOctober 2023
Summary Markets continued to decline in October, retracing lower for the third consecutive month. Stocks took a hit due to a combination of strong economic data – which fueled concerns that higher interest rates will persist – and geopolitical risks associated with an escalating conflict in the Middle East. Bond yields were volatile throughout the…
Read MoreSeptember 2023
Summary Markets declined further in September, marking a second consecutive down month for both stocks and bonds. Interest rates marched higher, and the Treasury curve flattened with the 10-year yield topping 4.6% late in the month; mortgage rates also ended higher. On the economic front, the United Auto Workers initiated the first phase of a…
Read MoreAvoid A Knockout
“You can map out a light plan or a life plan but when action starts it may not go the way you planned, and you’re down to the reflexes you developed in training…” Joe Frazier (American Professional Boxer) A friend shared with me how his son was preparing for a formal boxing match. Beyond…
Read MoreInevitabilities: Death, Taxes…and Audits?
Benjamin Franklin is often quoted for having said there are two certainties in life: death and taxes. But, as mid and large plan sponsors of defined contribution (DC) plans can attest, their annual benefit plan audit is another certainty. And let’s not overlook the possibility of a regulatory audit. Regarding the latter, there’s been significant…
Read MoreAugust 2023
Summary Markets seemed to wilt in the summer heat of August before staging a small rally at month-end to pare earlier losses. On August 1st, Fitch downgraded its rating for U.S. government debt from AAA to AA+, sparking an equity and interest rate sell-off that persisted for three weeks. Later in the month, encouraging economic…
Read MoreJuly 2023
Summary Stocks moved higher in July, and interest rates edged upward. While much of the country dealt with scorching temperatures, inflation continued to cool; June’s CPI of 3% marked a new low off 2022’s peak. Consumer confidence and the labor market both continued to improve. Following a pause in June, the Fed hiked the fund…
Read MoreJune 2023
Summary Global equity markets moved higher in June. Boosted by resilient consumer spending and technology sectors, U.S. stocks led the way, as equities continued to rebound from 2022’s losses. Inflation cooled to 4% through May, its lowest level in over two years, prompting the Federal Reserve to pause in their tightening cycle, and ending a…
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