Stable value investments have been
a core investment option in defined contribution retirement plans since the
1970s and are an attractive alternative to money market investments
due to steady returns and principal preservation guarantees. Stable value funds
have proven their worth to investors during the protracted period of low
interest rates present since the recent financial crisis. Consider the
following comparison of 2007-2016 calendar year total return for the Vanguard
Federal Money Market Fund (VMFXX)[i] to
the HBS MetLife Stable Value Fund.
Wednesday, August 9, 2017
Tuesday, August 8, 2017
Q2 Retirement Market Recap - Stocks and Bonds Advance Again in the 2nd Quarter
As of June 30, 2017 U.S. equities advanced for the seventh consecutive quarter, with the S&P 500 Index gaining 3.09% in the second quarter and 9.34% year to date. With the economic expansion and the bull market for stocks both in their eighth year, it is understandable that many investors are nervous about a market correction. Equity prices are reflecting a very solid U.S. economy, operating at full potential and full employment. Most of the economic data followed by investors has been positive:
If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (800) 388-1963 or email us at hbs@hanys.org.
- surges in Leading Economic Indicators, and the Small Business Optimism Index;
- accelerating global Gross Domestic Product (GDP) growth forecast;
- rising housing starts;
- strong Purchasing Managers Indexes (manufacturing and service sectors), strong hiring, declining unemployment, record low weekly unemployment claims and high quit rate;
- low inflation;
- strong consumer data: growth in average hourly earnings/real disposable personal income, household balance sheets, savings rates, credit scores, and record low household financial
- obligations ratio; and
- strong retail sales.
Read the Q2 Retirement Market Recap to learn more about the 2nd quarter stocks and bonds performance, and also review tips on "Understanding Non-Governmental 457(b) and 457(f) Plans".
If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (800) 388-1963 or email us at hbs@hanys.org.
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