A History of Trust: Crews Banking Corporation

The two Charts of the Day are from Michael Kitces and show the value of a $100,000 portfolio of 60% stocks and 40% bonds after 30 years with a 4% and 5% initial withdrawal rate. These comments come from Rich Emch, CFP®, Senior Trust Officer.

Today’s chart comes from VettaFi. Fixed income exchange traded funds (aka ETFs) have taken in over $1 trillion in assets over the last seven years, and only had three months of outflows.

Today's Chart of the Day is from S&P Global, and it shows the weekly returns of the S&P 500 year to date. Yes, cumulatively the market is down, but if you happen to miss the three 6%+ weekly gains out of the last 26 weeks, your total return for the year could look a whole lot different.

This chart comes from the Visual Capitalist. Since 1950, the average economic expansion lasts 67 months. The average recession, though painful, only lasts 11 months.

As of today, small- and mid-cap stocks on a year-to-date basis are performing better than their large-cap counterparts by 3% and 2%, respectively. There is an ebb and flow but going all the way back to 1994 small- and mid-cap stocks have outperformed large-cap stocks by an annual 0.66% and 1.49%, respectively. Financial theory supports, and so far this year it is also true, that when you add them to your portfolio they lower your risk due to the additional diversification. Since this follows our motto of obtaining the “highest returns, for the least amount of risk,” we include small- and mid-cap stocks in all our portfolios.

One of our clients calls this the “Chiclets Chart” because of its resemblance to that classic brand of candy-coated chewing gum.

Today’s chart from Morningstar shows annual net flows into passive funds (in purple) vs. active funds (in orange), and their dominance for the last 11 years.