Markets pushed a little higher once again today with the S&P 500 up 0.3% and Toronto up 0.9%.
The optimism may continue until and unless there is a sign that inflation is not being slayed and / or that the Fed will continue to raise interest rates higher / longer than hoped.
No particularly noteworthy stock movements today for the stocks I follow. But a lot of names sort of grinding higher in this new year.
Aside from stock picks, I continue to like VBAL or VGRO as sort of default investments that should do well this year. And in any case they are prudent choices. VBAL suffered last year from the sharp increase in interest rates as well as the lower stock markets. This year interest rates (longer-term rates specifically) are extremely unlikely to move up as sharply as they did last year as they started this year at a higher level. In fact longer term rates have been falling steadily since the January 1. It’s very early going but in January VBAL is benefiting from higher stock prices, lower long term rates (causing capital gains on longer bonds) and the fact that short term money now earns at least something. Of course inflation remains a problem, but inflation is there whether VBAL goes up or not.