What a year it was in 2019!
It was the best year for stocks (S&P 500 Index) since 2013 and the best year for bonds (Bloomberg Barclays U.S. Aggregate Bond Index) since 2002. The diversified investor had an especially good year: A hypothetical 60/40 portfolio with 60% in S&P 500 stocks and 40% in a diversified portfolio of bonds would have posted its best annual performance since 1997.
In 2019, markets also more than made up for the pain of 2018. That was the first year since 1969 in which both stocks and bonds were down during the same year.
Looking out to 2020, it might seem unlikely the strong momentum in stocks could continue. H... Read more