During the depths of the first quarter market plunge, we discussed our view and expectation that the stock market would rebound well before the economy improved or the COVID-19 virus was contained. History has taught us that equity markets don’t wait for all the bad news, economic fallout and corporate…
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Category: Market Outlook
Federal Reserve: What will next year bring?
As many Americans anticipated, the Federal Reserve decided not to decrease interest rates at their December meeting. Although many announcements that come from the Federal Reserve, both good and bad, tend to make the market jump or dip, this decision was already “baked” into the market at this point. Nobody…
Is October really a spooky time for your retirement?
October is an exciting month for many people because fall is in full swing and many are preparing for Halloween. However, October may frighten investors and those in the financial services industry because historically, some of the biggest market crashes have occurred during this month, and it’s also when cost…
Why you should keep a close eye on the repo market
One of the most overlooked powers of the financial market is so important that it actually acts as the plumbing that makes everything go. I’m talking about the repo market, which is shorthand for repurchase agreements. Although there are a lot of moving parts within the repo market, it’s a…
Federal interest rates cut for the first time in over a decade
Over the past few weeks, there has been a flurry of media attention around the Federal Reserve’s decision to cut interest rates by 25 basis points. This is the first time the U.S. economy has experienced a rate cut in over a decade. However, many consumers and investors are unaware…
Is the Fed going to cut rates?
With 2019 more than halfway over, there are a few things that investors should continue to keep an eye on until year-end that could lead to market movements. One of the biggest drivers continues to be Fed decisions – while they did not do anything in June, they did give…
2019 mid-year economic update and market outlook
If we were going to grade the U.S. economy so far this year, it would rate a solid “B,” while the rest of the world gets a “C minus.” Importantly, this disparity may be the key to understanding markets for the rest of 2019. With the U.S. in generally good…
The interest rate pendulum
When interest rates get whipsawed the way they have in the last couple of weeks, we believe some explanation is necessary. First and foremost, we don’t believe it is one particular issue but instead, a lot of balls in the air at the same time that are creating uncertainty. China,…
Why slowing retail earnings growth isn’t a bad thing
As we reach the tail-end of earnings season, we’ve seen a majority of companies report in line or slightly better than anticipated. It looks like this may be the end of earnings growth, but overall earnings are positive. However, slowed corporate earnings isn’t necessarily a bad thing, and it doesn’t…
Holiday cheer fades as markets deliver a reality check
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…
