For the calendar year 2016, the S&P 500 Index is up 1.35%. As you can see from the chart below, which represents the trailing 12 months, the index has rebounded from its February lows but is still below last summer’s high. The 10% decline that ended in February has been recovered.
On the fixed income side, the interest rate on the 10 year U.S. Treasury note is currently 1.90%, which is slightly lower than this time last year. Rates have come down from last summer’s highs around 2.50%. It is interesting to note that the high in yields coincided with the high in the stock market. Bonds have continued to do their job as a portfolio stabilizer. During times when stocks have fallen, yields have also fallen, which means bond prices go up. Bonds have gone up when stocks have gone down, which is exactly what they’re supposed to do.
All of us at Whitcomb & Hess would like to wish you a happy end to tax season and the beginning of spring. It is our privilege to work with you and we look forward to continuing to serve you. Please reach out to us with any questions concerning your accounts.
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