The first real stock and bond market tumult since the fourth quarter of 2015 has grabbed media attention and put investors on edge. After rising nearly 10% through September, the S&P 500 entered “correction” territory, ultimately returning a negative 4.4% for the year 2018. There are numerous rationales for the…
Blog
Category: Market Outlook
Market volatility is not as spooky as it sounds
Even though Halloween is right around the corner, investors shouldn’t let the market spook them. When the market is on a slight downturn, it’s common for some investors to become nervous or scared. However, these ebbs and flows are the nature of the market and it’s crucial for investors to…
Sectors making a splash this summer
Summer is an interesting season for the stock market because we often see individuals putting their portfolio on the back-burner, opting to instead dedicate their focus on vacation, or spending time with family and friends. When it comes to the market, the number of participants determines how accurate prices are.…
What you should know about the Italian bond market
There’s been a lot of news coming out about Italian bonds lately. Political turmoil and debt are scary and intimidating words to see in headlines. But, how serious is it all? I’d like to share some thoughts on this issue and how the news may affect our bond market. Although…
A record first quarter for earnings
Thanks partly to tax reform, the first quarter of 2018 was good for the economy, and stupendous for corporate profits - particularly for large companies that make up the S&P 500 Index. As of May 7, 87 percent of the S&P 500 had reported first quarter results. All 11 sectors…
The 10-year Treasury yield hit 3% level: Our take on what that means
For those that follow interest rates and the underpinnings of the economy for a living, a 3 percent 10-year Treasury rate is something that should be noted. While the media may be positioning this as front page news on nearly every financial news website you check today, I don’t believe…
The stock market sees its shadow
Commentators often call a decline in stock prices after a sustained rise a “correction,” as if the previous rise was somehow an error. Normally, we refrain from such nomenclature, because no one knows what drives share prices in the short run. But in the case of recent declines in U.S.…
The stock market sees its shadow
Commentators often call a decline in stock prices after a sustained rise a “correction," as if the previous rise was somehow in error. Normally, we refrain from such nomenclature, because no one knows what drives share prices in the short run. But in the case of recent declines in U.S.…
Some debt is not like the other
With all the talk lately concerning the U.S. debt and how it will grow due to the new tax plan, we thought it would be a good idea to address what it means. First and foremost, we must differentiate between individual/corporate debt and the debt of a sovereign nation such…
The two-year has broken through to the other side
Have we finally begun seeing the normalization of interest rates in U.S. Treasuries? Although we’ve seen sudden rises in interest rates before, we haven’t seen a precipitous rise like we’ve seen in the last month. Although we often focus on the ten-year Treasury as the barometer of interest rates, the two-year Treasury is our focus at this point.…