November Investment Perspectives

Why investors should stay the course, a look at premium-priced bonds, and what’s ahead for stocks.


In this month's issue:

Playing the Long Game - Mark Luschini

There is a bull market in pessimism. That sentiment makes sense if one tunes in to the popular media talking about the prospects for the U.S. economy and similarly, it can be found in the financial media as it relates to the stock market. On the latter, it is not surprising then to find that recent surveys of individual investors and market participants lean bearish toward equities.

It seems everyone is repeating that a recession is all but certain because they heard it from someone thought to be credible. Certainly, such a condition is usually not good for the economy or the stock market, so concern is understandable.


An Update on Premium Priced Bonds - Guy LeBas

We typically spend these pages discussing contemporaneous market happenings, but instead, we’d like to address an educational matter that arises every few years: Premium-priced bonds.

Premium-priced bonds are bonds that trade above their face value. For example, a bond that is currently trading at $101 but matures in 12 months at a price of $100 (par) is a premium bond. There is a frequent misconception among individual investors that premiums are somehow “bad” in the sense that buying one necessitates purchasing something today that will be worth less tomorrow.


Is There a Fall Back - Gregory M. Drahuschak

After two consecutive monthly losses, including the third-worst September result since 1950, the S&P 500 Index staged a dramatic reversal last month by posting a 7.99% gain, which was the seventh-best result for October since 1950. The Dow Jones Industrial Average had its best month since January 1976.


You can read the full Investment Perspectives here.


Disclaimer

The information herein is for informative purposes only and in no event should be construed as a representation by us or as an offer to sell, or solicitation of an offer to buy any securities. The factual information given herein is taken from sources that we believe to be reliable, but is not guaranteed by us as to accuracy or completeness. Charts and graphs are provided for illustrative purposes. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors.

The concepts illustrated here have legal, accounting, and tax implications. Neither Janney Montgomery Scott LLC nor its Financial Advisors give tax, legal, or accounting advice. Please consult with the appropriate professional for advice concerning your particular circumstances. Past performance is not an indication or guarantee of future results. There are no guarantees that any investment or investment strategy will meet its objectives or that an investment can avoid losses. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. A client’s investment results are reduced by advisory fees and transaction costs and other expenses.

Employees of Janney Montgomery Scott LLC or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ from the opinions expressed within. From time to time, Janney Montgomery Scott LLC and/or one or more of its employees may have a position in the securities discussed herein.

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