September 5, 2023 Investor Insights
Stocks Beat Bonds...Again
September 5, 2023
Enjoy this week's "Investor Insights," a weekly newsletter highlighting the financial news you need and providing tips and tricks to help you make better investment decisions.
- Stocks have far outperformed bonds since the start of the COVID pandemic in March 2020, with the S&P 500 gaining 80% while the US Aggregate Bond Index fell by -11% over the past 41 months. This marks a 90% gap, the largest since March 2000. 1
- A July survey of 2,000 employers revealed that almost half of them reduced pay for recent job openings. Additionally, 35% of newly hired workers reported taking a pay cut at their new jobs. 1
- Used car prices have surged by 30% to an average of $27,000 since the pandemic began. It now takes 42 months on average to pay off a new car, and the percentage of "severely delinquent" auto loans has risen to 5.37%, the highest level since 2006. 1
- Emerging market economies (ex: China, India, Mexico, Taiwan, South Korea, Vietnam), which are home to over 4.3 billion people and account for around half of global GDP, are expected to grow by 4.1% in 2024 compared to just 1.4% in advanced economies. 2
Sources:
- MFS - "Beyond the News"
- WSJ - "Is Now the Time to Invest in Emerging Markets?"
*Past performance is not indicative of future performance
Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter.
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