The following is an excerpt from our recent research piece "2013 Year-In-Review." The full report can be found HERE.
As we close out 2013 and prepare to ring in a new year, we in the U.S. have a great deal to rejoice about and celebrate. U.S. equity markets finished off their fifth straight year of positive returns and are now at all-time highs, which means many 401k balances have recovered to pre-recession levels. U.S. home prices continue to climb, meaning many consumers feel wealthier. Additionally, we are beginning to see an acceleration in hiring, and the unemployment rate in this country is at the lowest level since November 2008, which means more Americans are heading back to work.
Pathlight’s thesis when we entered 2013 was that the negativity surrounding the economy and equity markets was simply tired. We also stated that the myriad reasons why stocks could not continue to rise were so well known and understood that they presented little barrier, given continued economic growth and the easy money policies....