Current Finance Articles
Every month, Fort Pitt Capital Group’s Dan Eye curates valuable finance articles for you from the vast amount of reading that the Portfolio Management Team does to stay up to date on the market. We want to help you cut through the clutter and have a resource to find current financial news from relevant sources.
Finance Articles October 2022
The Federal Reserve is expected to raise interest rates another 75 basis points next month leaving many to speculate a recession may be on the horizon. While inflation is still a hot topic in the last few months of the year there are few critical items impacting the economy. Here are some of the topics we’re watching at Fort Pitt.
Our first article, “A Fed shift from quantitative tightening to ‘tinkering’ will emerge as a new bull factor for the stock market in 2023, Bank of America says,” comes from Markets Insider. The Federal Reserve is in a quantitative tightening cycle reducing its near $9 trillion balance sheet via $95 billion per month. Quantitative tightening is used to reduce the Federal Reserve’s balance sheet by either selling Treasury bonds or letting them mature. If the Federal Reserve pauses interest rate hikes, it could be a sign to investors a bull market may be ahead in 2023.
“NY Fed 1-year inflation expectations slide to 12 month low as household spending expectations crater most on record,” is our next article from ZeroHedge. The article takes a look at the New York Federal Reserve’s household spending expectations as the Federal Reserve continues to raise interest rates in an effort to combat inflation. The New York Federal Reserve found that one-year-ahead inflation expectations is the lowest it has been since 2021, down from 5.7% to 5.4%. Additionally, the median expected growth in household income in September remains at a high of 3.5%.
Wolf Street supplies our third article, “The most splendid housing bubbles in Canada, October update: Prices plunge at fastest pace on record.” The article breaks down the stats of the housing market plunging in different parts of Canada. The Bank of Canada’s interest rate repression plays a role in the plunge. The article shares the index has dropped 7% over four months.
Dan Eye, chief investment officer at Fort Pitt, is included in our next article from MarketWatch, “Stock market’s wild gyrations put earnings in focus as inflation “crushes” Fed pivot hopes.” The consumer price index (CPI) showed an inflation rate of 8% for the seventh month in a row which suggests the Federal Reserves aggressive interest rate hikes has yet to calm inflation. Earnings are seeing the impact, explains Eye, “I don’t think any strategist or analyst who follows the market closely really anticipates that earnings are going to hold up into 2023. We are in a situation where it’s a matter of how far they need to be marked down.”
Lastly, financial advisor Bryson Roof, shares how people can keep from falling victim to misleading sales pitches from financial advisors with a breakdown of financial words and phrases. The article, “Decoding financial jargon,” in Harrisburg Magazine shares buzzwords and other practices to watch out for when vetting an advisor.
Finance Articles September 2022
The Federal Reserve raised interest rates another 75 basis points this month and plans to continue to hike rates in the coming months. This is leaving many to ponder the economic ramifications. Amid these changes, we’re staying on top of the news versus the noise. Here are some of the stories we’re keeping an eye on here at Fort Pitt.
Our first article comes from CNBC, “More homebuilders lower prices as sentiment falls for ninth straight month.” The National Association of Home Builders/Wells Fargo Housing Market Index showed the sentiment fell 3 points in September. The article says that home builders are lowering the prices of their homes because of rising interest rates.
ZeroHedge provides our next article, “Yields are defying yesterday’s logic.” This article explores how bond yields perform in different types of market conditions. While inflation is high and the market is volatile investors favor Treasury bonds. On the other hand, when the economy is strong bond yields are attractive.
“‘Perfect storm’ strikes but governments continue to spend as if nothing has changed,” is another article from ZeroHedge. Retail sales are down as inflation remains high and prices are increasing. The article suggests that this is a perfect storm and will impact small businesses the most. The article also explores how government spending hasn’t slowed despite inflation continuing to rise.
We turn to Money.com for our fourth article, “Dollar Scholar asks: When should I use ‘Buy Now, Pay Later’ apps?” Buy now, pay later (BNPL) apps have grown in popularity in recent years as people use them similarly to layaway to fund large purchases. Financial advisor Kaitlyn Haney provides insight on when you should use BNPL and when you should avoid them, “For someone who is responsible with their debt, I recommend using these plans, when offered, if you are making a larger purchase like a television or appliance.”
Our final article comes from Harrisburg Magazine where financial advisor Bryson Roof writes about, “Building a financial dream team.” In this article, Roof explains why having a team of financial experts in different areas is beneficial to your overall financial goals. Roof parallels the need for different doctors to the need for different financial experts, “I absolutely love my dermatologist; she has an amazing bedside manner, and I really trust her. That being said, she will not be my first call if I need neurosurgery–expertise matters.”
Finance Articles August 2022
Summer is winding down and as students head back to school, we have our back-to-school reading list to keep you updated on what’s been going on in the markets. Here is a look at some of the stories we’re keeping an eye on here at Fort Pitt.
Our first article, “Who’s afraid of Jackson Hole?” comes from ZeroHedge. The article shares outlook on the Federal Reserve’s Jerome Powell’s speech in Wyoming. In his speech, Powell is expected to discuss the current economic outlook, but this article suggests that people really want to hear his outlook on the federal funds rate. In a report published in June, the FOMC projected the federal funds rate to increase to 3.4% by the end of this year.
“Euro trades at two-decade low against the dollar. And some think it could slide much farther,” is our next article from CNBC.com. Since the euro traded at 0.9903 against the US dollar, analysts are anticipating it will slide further because of the ongoing conflict in Ukraine, inflation, and China’s economy slowing down.
ZeroHedge provides another article taking a look at inflation and rent, “Some more good inflation news: owner-equivalent rents are about to peak.”. The article suggests inflation actually peaked 4 to 7 months ago. However, the article also says that latest Apartment List data suggests that CPI shelter data is once again delayed and will peak again in September or October.
We turn to PlanAdviser for our fourth article, “SEC flexes regulatory muscle with RIAs, brokers in focus.” Our chief compliance officer, Mary Giconi shared insight on the importance of RIAs having a compliance arm within their firm. “The role of the compliance officer has changed significantly,” she says. “Compliance has really shifted from being a reports-generating department to a more dynamic part of the organization. There is a greater focus on training and building dialogue with the advisers so that we are providing the best client service that we can.”
Lastly, Bryson Roof, a financial advisor at Fort Pitt, pens an article for Harrisburg Magazine about “What happens to my money when I die?” In the article, Roof explains that it’s important for people to make plans early so they understand all of the options available to them.
Finance Articles July 2022
For many across the country, this summer has been a hot one, but it’s not just the temperature turning up the heat. Movement in the stock market remains a hot topic as second-quarter earning season reports come out and tech companies scale back on hiring. Here are stories we’re keeping an eye on and what we’ve been up to at Fort Pitt Capital Group:
Our first article, “Supply chains inching back to normal brace for headwinds of softer demand,” comes from Bloomberg. The article takes a look at the supply chain that was uprooted during the pandemic. Economists are now saying that things are turning around and supply may soon catch up with demand as ocean freight rates decline from a two-year high.
“Microsoft eases up on hiring as economic concerns hit more of the tech industry,” is our next article from CNBC.com. The article talks about how Microsoft is slowing down its hiring pace and instead realigning resources. Hiring slowing at the tech giant may trigger broader economic concerns for the tech industry.
Another piece from CNBC.com, “Senate advances more than $50 billion bill to boost U.S. semiconductor production,” looks at a bill being moved through Senate. In an effort to become less dependent on Asia-based manufacturers, the Senate voted on a bill that will boost semiconductor production within the U.S. The bill will provide about $50 billion in computer chip manufacturing if passed.
We turn to The Balance for our next piece featuring Fort Pitt’s Bryson Roof, “Trust vs. will: what’s the difference?” This article explores the differences between a trust and a will and how to decide which one is best for your needs. Roof explained, “A will answers, ‘How do you give your assets to someone when you die?’ A trust can be used in the same fashion, but tends to be used for more complex situations or when someone wants to retain a level of control. To me, trust equals control.”
Lastly, Dan Eye, chief investment officer at Fort Pitt, was featured in a MarketWatch article, “Dow books biggest drop in more than two weeks after report about Apple’s plans to slow hiring, spending.” Apple is another tech company that is slowing down its hiring pace and this article takes a deeper look into why it likely caused the biggest drop in weeks on Dow. “We are going to need to get our arms around what earnings are going to look like in coming quarters and that’s going to depend on guidance,” Eye shared.
Finance Articles June 2022
It’s officially summer and we’re halfway through the year! Take a look at what news we’re keeping an eye on and what we’ve been up to at Fort Pitt Capital Group:
Our first article, “Chevron hits back, says Biden trying to “impose obstacles” to energy delivery” comes from ZeroHedge. As drivers are feeling the impact of rising gas prices at the pump, energy companies and the White House are at odds on the obstacles moving forward. The article highlights 10 things the administration can do to help reduce gas prices.
“Here’s why this housing downturn is nothing like the last” is our next article from CNBC.com comparing today’s housing market to markets past asking, “Is today’s housing market in the same predicament that it was over a decade ago, when the 2007-08 crash caused the Great Recession?” The article explains that the market today is in better health than it was in 2010 and explores how affordability is another issue impacting the market.
Another key topic is whether or not the U.S. is headed toward a recession. ZeroHedge supplies our next article, “A look at the last five recessions.” Economists are looking at previous recessions for guidance on what may lie ahead and the impact on different sectors of the market.
Our next article comes from Seeking Alpha, “Where are Treasury yields headed as the Fed embarks on quantitative tightening?” where Dan Eye, chief investment officer at Fort Pitt, discusses the Fed’s plan for monetary policy. “I don’t think we know the impacts of QT just yet, especially since we haven’t done this slimming down of the balance sheet much in history. But it’s a safe bet to say that it pulls liquidity out of the market, and it’s reasonable to think that as liquidity is pulled out, it affects multiples in valuations to some degree,” he explains.
Lastly, Dan Eye was also featured in a Barron’s Advisor article, “Staples stocks are usually a safe bet. Why they’re getting crushed.” While consumer staples are usually a reliable sector, recent earnings show signs of weakness.
Finance Articles May 2022
We’re back from a restful and patriotic Memorial Day weekend. Here’s some of our beach reading material and an update on what’s new at Fort Pitt Capital Group:
“Employees everywhere are organizing. Here’s why it’s happening now,” is our first article from CNBC. This piece discusses the resurgence of unions amid the Great Resignation. A survey from the National Labor Relations Board found that union representation petitions increased 57% from the same time last year. The article dissects the reasons why unions might be increasing in popularity, including supportive policies from the White House, increased health concerns stemming from the pandemic and recent success of unionized companies like Starbucks.
We turn to ZeroHedge for our next piece, “These cities and states are leading America’s manufacturing comeback.” Not since World War II have we seen such a resurgence of manufacturing across America. This article focuses on what cities in Michigan and California are leading the charge for the manufacturing comeback. Additionally, there’s been exponential manufacturing job growth in Nevada over the last 10 years, with a 50% increase in jobs.
Next up from the TD Ameritrade Network, we have, “Streaming steals parks’ spotlight in Disney’s (DIS) 2Q report,” featuring chief investment officer Dan Eye. Eye joined host Nicole Petallides on “The Watch List” to discuss Disney earnings and whether or not investors should buy the dip.
Finally, “Actuary lawsuit highlights data breach risks” comes from the Plan Adviser and includes insight from vice president David Graver. As more and more of our business transact online, Graver emphasizes the importance of individuals and plan advisers being aware of cyberthreats like ransomware and phishing scams.
Finance Articles April 2022
April showers bring May flowers! As spring is in full swing, here’s what we’ve been reading and what we’ve been up to this month at Fort Pitt Capital Group:
“Most U.S. college grads don’t work in the field they studied, survey finds,” is our first piece from Bloomberg. Amid inflating student-loan debts in the U.S., parents may be wondering whether or not a college degree is worth the price tag. The study sparking this debate comes from a new survey conducted by Intelligent.com. The survey, completed by 1,000 Americans with either a four-year or postgraduate degree, revealed that more than half of college graduates over the age of 25 don’t work in their field of study. Additionally, 25% of participants earn less than $30,000 a year, and one out of seven earns less than $15,000 per year.
We turn to ZeroHedge for our next piece, “Rising unaffordability is causing renters to abandon hope of ever owning a home.” Following a two-year home buying frenzy, many American home buyers may be losing hope. The New York Fed’s 2022 SCE Housing Survey showed that participants are now less likely to buy a home if they were to move. This is compared to the 2021 survey, with the drop amounting to a decline of 10 percentage points. The article also shares an alarming graph that demonstrates the percentage of renters who believe they will ever own a home has fallen to the lowest level since the survey began in 2014.
Next up from Fox Business, we have, “These sectors are where investors want to be right now: Market expert,” featuring chief investment officer Dan Eye. Eye joined host Liz Claman for ‘The Claman Countdown’ to discuss why he believes the gaming and leisure properties space is a very solid income play.
Lastly, “A hard shove to boost retirement stockpiles,” comes from the Pittsburgh Post-Gazette and includes vice president, Chris Chaney. As the Secure Act 2.0 is currently making its way through Congress, Chaney explains his thoughts on the proposed bill as well as the big impact it could have on retirement savings and more.
Finance Articles March 2022
Spring has sprung! This March came in like a lion and out like a lamb as expected, but the current geopolitical volatility is still roaring. Here’s what we’ve been reading this March at Fort Pitt Capital Group as we continue to navigate the current market environment.
“How much Russian crude oil & petroleum product does the US import? Where does it go? How much impact will the Russian oil ban have?” is our first piece from Wolf Street. Last year, Russia exported over 7,000,000 barrels per day in crude oil and petroleum products to the world. As the U.S. trade of crude oil and petroleum products (i.e. gasoline, diesel, jet fuel, and naphtha) in 2021 involved 672,000 barrels per day imported from Russia, this piece explores the impact we can expect to see as a result of the Russian oil ban.
We turn to ZeroHedge for our next piece, “Elon Musk calls for Europe to restart nuke plants, US to boost oil & Gas Output ‘Immediately.’” Throughout the first weekend in March, Elon Musk called for European leaders to “restart dormant nuclear power stations and increase power output of existing ones,” insisting that it’s critical to national and international security. However, it appears that Musk experienced a change of heart as a result of the worsening geopolitical scenario in Ukraine, as he followed up with comments acknowledging that this would negatively affect Tesla, but that “sustainable energy solutions simply cannot react instantaneously to make up for Russian oil & gas exports.” The story explores the issues around finding solutions to the current fuel shortage.
Next up from Bloomberg we have, “Investors ‘flying blind’ as clouds envelop S&P profit outlook,” featuring chief investment officer Dan Eye. Eye spoke with Bloomberg reporter Jess Menton to discuss geopolitical events that are impacting the markets and the uncertainty surrounding them due to the lack of relevant data.
Lastly, “Best practices for plan sponsors’ investment committees,” comes from BenefitsPRO and includes a Q & A with our director of retirement plan services, Nathan Boxx. For retirement plan sponsors with established investment committees, following certain best practices can help direct any possible challenges that may come to light. This piece dives into best practices plan sponsors should have in place as well as guidance on common questions.
Finance Articles February 2022
Although we’re rounding out the shortest month of the year, our round-up for February’s finance articles continues to highlight some of the great reads we’ve had this month at Fort Pitt Capital Group:
“Limits to green energy are becoming much cleaner,” is our first piece from ZeroHedge. This piece runs through a list of some of the issues seen within the proposed “smooth transition” to intermittent electricity from wind and solar and hydroelectric. Although the basis of a green economy, things are increasingly not working out as planned, and modelers who initially encouraged the transition possibly missed some important points.
We turn to Cheddar TV for our next piece, “Stocks close mixed as investors digest Fed minutes, Russia-Ukraine tensions,” chief investment officer Dan Eye joins Cheddar TV to discuss mixed market action following the release of minutes from the Federal Reserve’s most recent meeting along with ongoing tensions between Russia and Ukraine.
Next up also from Zero Hedge, we have, “Soaring rents eat Americans’ wage increases…and then some.” In 2021 rent increases overshadowed CPI reports, climbing to an average of 13.5%. Notably, there were some outliers across the country, including Phoenix, where rents reached a whopping 25.3%. Rental houses haven’t seen too much of a difference, with private equity firms buying neighborhoods at above-market prices and converting houses to rentals at inflated rates. With market power favoring corporate landlords at the moment, the average American should not expect rents to come down anytime soon.
Lastly, “Jobs report won’t ‘speak to the strength or the health of the labor market,’ strategist says,” comes from Yahoo! Finance and includes chief investment officer Dan Eye in a discussion on outlook for the economy and how the disparity in stock valuation can serve as a positive environment for investment managers.
Finance Articles January 2022
To kick off 2022, we wanted this month’s finance articles to highlight some of the great media coverage that Fort Pitt Capital Group has already received in the new year, commenting on key markets, economy, and wealth management topics. Here’s what we’ve been up to this January:
“Stock pick to keep your portfolio in good shape,” is our first piece from FOX Business Network. Our own portfolio manager Carter Henderson joins Liz Claman for The Claman Countdown’s “Countdown Closer” segment to discuss LULU stock and the “dead cat bounce” we can expect to see in the broader market as the economy continues to react to measures from the Federal Reserve.
Next up from local news network FOX 43, we have, “Why is the stock market so volatile right now? Experts discuss if people should be worried.” Lead financial advisor Brad Newman joins FOX 43 to unpack the recent market volatility and why he believes that investors should have a long-term plan in place. In this segment, Newman goes on to address the importance of adequately assessing risk before developing your overall strategy around your risk level.
“US STOCKS-Futures tumble as tech selloff deepens; Fed meeting eyed,” is our third piece from Reuters. This article features our chief investment officer Dan Eye who weighs in on market volume ahead of the Fed’s two-day January monetary policy meeting. He explains that the volatility we see in the market is a reaction to the new reality of tighter policy coming from the Fed.
We turn to TD Ameritrade Network for our next piece, “PNC Financial (PNC) & GXO Logistics (GXO): Inside Out.” Portfolio manager Carter Henderson joins TD Ameritrade Network to discuss companies he’s keeping an eye on as the markets extend their selloff. Henderson also chats with host Oliver Renick about sectors seeing demand in the current economic environment.
Lastly, “5 tips from financial experts to get holiday debt paid off fast,” comes from Yahoo! Money and includes Bryson Roof, CFP and financial advisor. Post-holiday debt can be a huge stressor, especially once January rolls around. In this piece, Roof advises readers to negotiate interest rates when considering ways to tackle debt and save money when possible.
Finance Articles December 2021
As we round out the year here at Fort Pitt Capital Group, we want to thank all of our clients, friends, and family for a great 2021 and hope for an even better 2022! Here’s a look at the articles we’ve been reading as we approach year-end:
“Bye-bye, miners! How Ethereum’s big change will work,” is our first article from Bloomberg. This piece runs through a list of the big changes in the works for Ethereum. These include lightening the load of Ethereum “miners” who track and validate transactions on the most popular blockchain network. The decision to phase out miners comes after much criticism around the environmental impact that comes with their workload after it was revealed that these miners use nearly as much electricity as Chile.
Next up from ZeroHedge, we’re reading, “Five inflation myths.” Over the past year, the U.S. has dealt with widespread inflation, this piece takes a deep dive into five common inflation myths that you may have heard day-to-day and in the media lately. Two of the “myths” include the belief that inflation is simply rising prices and wages. However, inflation is actually an increase in the money supply. While rising wages are a sign of inflation, they are not the root cause. As of early December, the official CPI is close to 6% while hourly earnings are only up 4.8%.
“Going to cash can be as costly as a market crash,” is our third piece from ZeroHedge. There’s a clear difference between “going to all cash” and “raising cash” when managing risk. When it comes to “going completely to cash” in portfolios, this is usually triggered by an emotional reaction that can negatively impact portfolio outcomes. While it may seem logical at times to “go to all cash” to avoid “crashes,” the risk of mistiming the markets can potentially result in an even more downside. However, it’s important to keep in mind that managing risk is not the same as avoiding risk, and investing without the acceptance of risk is unavoidable. Just be sure to take actions to minimize the impact of risk if things don’t work out as planned.
We turn to Yahoo! Finance for our next piece, “Volatility ‘is back,’ strategist says, markets are ‘adjusting to the new reality’.” Our own chief investment officer, Dan Eye, joins Yahoo! Finance Midday to discuss the volatile market, the Fed, and a few names that we’re seeing as opportunities for investors.
Lastly, “10-year Treasury yield falls to lowest in two weeks, flattening the curve even as Fed official sees need to quickly raise interest rates next year,” comes from MarketWatch and includes our chief investment officer, Dan Eye. Despite potential interest rate hikes, Treasury yields are taking a hit right now. In this piece, Eye further expands on his take on falling Treasury yields and the state of the bond market.
Finance Articles November 2021
As we head into the holiday season, we have many things to be thankful for here at Fort Pitt Capital Group! Here’s a snapshot of the articles we’ve been reading during the month of November:
“The 40 in 60/40 portfolios is getting wilder and wilder,” is our first article from Bloomberg. This piece takes a deep dive into strategies that businesses are using as they attempt to get a handle on an increasingly challenging investment environment. Bonds have continued on a positive path following their early 2021 rise. However, low yields have made it increasingly difficult for money managers such as pensions and endowments to meet their goals in order to fill long-term obligations. As a result, followers of the 60% stocks and 40% bonds investing strategy now need to look further to see returns if they’re expecting to see the same 10% annualized gains they have since the 80s.
Next up, from TechCrunch, we’re reading, “Facebook accused of continuing to surveil teens for ad targeting.” According to new reports, Facebook has contradicted earlier claims that the platform would begin to limit advertisers’ access to children and teens. The reports revealed that Facebook has continued to track kids for ad targeting on multiple platforms, just now with the help of AI. The newfound research has prompted an international coalition of public health, child development groups, human rights organizations, and privacy campaigners to contact Facebook, calling for the company to come clean on the findings and make a full commitment to end the operation.
“‘People are hoarding’ – supermarkets are the next supply chain crunch as food shortages persist,” is our third piece from ZeroHedge. As we approach nearly two years into the pandemic, we’re still seeing supply chain disruptions across the country. Continued disruptions have made it increasingly difficult for consumers to find everyday items at the grocery store with the empty store shelves prompting some Americans to panic hoard as uncertainty around food supplies continues. This piece takes a deep dive into the specific items that most people are having trouble finding at the grocery stores, originally compiled by USA Today.
We turn to Bloomberg for our next piece, “Bitcoin caught between longer-term buyers, leveraged speculators.” Portfolio manager, Carter Henderson, discusses the importance of locking in gains as we head into a quiet period in the market come year-end.
Lastly, “Microsoft brings S&P 500, Nasdaq back into record territory,” comes from Reuters and includes our chief investment officer, Dan Eye. In this piece, Eye expands on the U.S. equity markets. Despite businesses such as Apple seeing around a six billion dollar decline in profits, today’s markets have allowed us to look past that, with the weakness seemingly contained to certain names rather than spread out to the broader market.
Finance Articles October 2021
As temperatures drop and the holiday season approaches, the U.S. economy heads into the fourth quarter, and we are keeping a close eye on markets and the economy! Take a look at what we’ve been reading during the month of October:
“Value stocks are unloved, unsexy, and poised to make a killing over the next decade,” is our first article. This piece comes from Fortune and argues for consumer staples in the portfolios of new investors who might otherwise only have an interest in edgy tech stocks. The article further highlights that because tech stocks have been in the limelight and focus for so long for many investors, value stocks are now cheaper by their biggest margin since the tech bubble peak. A new report from Research Affiliates is highlighted in the piece and emphasizes the protracted dominance of growth stocks and how this is setting the stage for value stocks to take over.
Next up, from Bloomberg, we’re reading, “Europe’s energy crisis is coming for the rest of the world, too.” The world is gearing up to fight over a disturbingly short supply of natural gas this coming winter. Many countries are more dependent than ever before on natural gas to heat their homes and businesses amid a perfect storm of issues plaguing alternative energy sources across the globe. Countries are already attempting to outbid one another for supplies as the northern hemisphere prepares for winter, and people pay closer attention than usual to natural gas market prices.
“The thorny truth about socially responsible investing,” is our third piece in Vox. The article breaks down how, on the surface, ethical investing seems easier than ever; however, it can be difficult to figure out if the companies you’re investing in are following through on ESG-claims. With increasing numbers of investors interested in investing ethically, there are certain steps to take in order to make sure your money is actually invested ethically. The task ultimately falls on regulators to define ESG, so that fund creators have standards to comply with.
We turn to MarketWatch for our next piece, “My daughter, 55, reprimanded me for not giving her a $25 gift certificate and said, ‘You have more money than you know what to do with.” Our financial advisor Bryson Roof, CFP, discusses the potential fallout resulting from making the tough decision to take from a 401(k) account too early, including missing out on the growth of funds that would have accumulated over time.
TD Ameritrade Network is the source for our last piece, “GXO, LULU stock picks.” Portfolio manager, Carter Henderson, joins the network to discuss how continued supply chain issues are impacting his stock picks as well as why he thinks investors should add these names to their portfolios, too.
Finance Articles September 2021
Here at Fort Pitt, not only are we ready for the fall foliage, but we’re also ready to tell you what we’ve been reading as the seasons change. Take a look at what’s going on in the world of
finance as we roll into Autumn:
“‘Forever changed’: CEOs are dooming business travel — maybe for good,” is our first article. This piece comes from Bloomberg and shares insight into a survey that revealed 84% of people plan to spend less on business travel post-pandemic across 45 companies in the U.S., Europe, and Asia. This article points that virtual software has made communication throughout the pandemic easy and effective, providing a lower-cost alternative to travel as well as a smaller carbon footprint. As a result, spending on corporate trips could reduce to as low as $1.24 trillion by 2024.
Next up, from CNBC.com, we’re reading, “House Democrats propose new retirement plan rules for the rich, including contribution limits and a repeal of Roth conversions.” On September 13, House Democrats proposed several changes to retirement accounts that would apply to wealthy Americans. These changes intend to restructure the tax code that comes with a new $3.5 trillion budget plan.
“The best ways to invest your money in 2021, according to the experts,” is our third piece in Next Advisor that features CFP and financial advisor Katharine Perry’s insight on investing. When it comes to investing, Katherine believes the sooner you can start, the better. “Your money makes money over time when you invest. That’s how you accumulate wealth,” she explains.
Bankrate is the source for our next article, “5 ways to maximize your Social Security benefits.” Our own CFP and financial advisor, Beth Lynch, shares advice on how Americans can make the most of Social Security benefits. Beth explains that working beyond the 35-year threshold can help if it allows for lower-earning years to drop off the record, and working during retirement can increase benefit payout.
Lastly, portfolio manager Carter Henderson joined TD Ameritrade Network “Market on Close” to discuss companies he sees opportunities with ahead.
Finance Articles August 2021
As we near the end of August, here at Fort Pitt we’re gearing up for fall. Take a look at what’s going on in the world of finance as summer comes to a close:
“Gammasterpiece: The full breakdown of Robinhood’s historic surge,” is our first article. This piece comes from ZeroHedge and shares insight into the historic surge of HOOD this month. After options trading became available, the stock price jumped over 50% highlighting investor’s interest in options trading. This article points out the amount of hedging exposure generated by the trades by looking at the options activity as a function of delta, the change in the value of a 1% move in the underlying stock.
Next up, from Wolf Street, we’re reading, “Bond market has been clueless about inflation for decades, now more so than ever. The meme the drop in yields = End of inflation is a fantasy.” At the end of March, the 10-year Treasury yield was 1.75% and by July 23 it closed at 1.30%. This yield drop took place despite the spike in inflation. However, this drop in the 10-year Treasury yield tells us that the recent inflation is short-term and will normalize in 2022.
“Markets point to a higher open amid concerns over Fed tapering,” is our third piece featuring Carter Henderson’s recent appearance on Cheddar TV. Despite the mid-month market selloff and the spike in COVID cases, Carter believes the economic recovery is still on track. Right now, we’re looking at unemployment, industrial production inflation, market valuation, and the U.S. consumer.
CNBC.com is the source for our next article, “S&P 500 doubles from its pandemic bottom, marking the fastest bull market rally since WWII.” The S&P 500 doubled since hitting its bottom amid the coronavirus at 2,237.40 on March 23, 2020. This marks the quickest rally back to 100% in just 354 trading days since World War II. Historically, it’s taken years to double from a market trough and many are crediting this quick rally to the massive monetary and fiscal stimulus.
Lastly, portfolio specialist Carter Henderson joined Fox Business for “The Claman Countdown.” Carter breaks down his investment strategy and reassures investors that despite the Delta variant, economic recovery is still remaining in check.
Finance Articles July 2021
Summer is in full swing and we couldn’t be happier to be enjoying it with our friends and family. We hope you can find some time to take a quick break from the summer sun and take a look at what we’re currently reading at Fort Pitt. Check out what’s going on in the financial world for the month of July:
“Inflation is starting to weigh on consumer confidence and spending,” is our first article. This piece comes from ZeroHedge and takes a look at U.S. inflation for the month of June. CPI inflation rose to a shocking 11% annualized, making it one of the highest inflation readings in the last 40 years. Much of this rise can be attributed to an uptick in used car prices and airline tickets which is not sustainable. However, increases in food, energy, and rent also increased which hinders consumer confidence.
Our second piece, “U.S.-China trade booms as if virus, tariffs never happened,” comes from Bloomberg. Just 18 months after the Trump administration signed the U.S. and China trade deal, China and the U.S. are shipping goods to one another at the fastest pace in years. As a result, the world’s largest bilateral trade relationship looks as if the pandemic never happened.
Next up, also from Bloomberg, we’re reading “China crushed Jack Ma, and his fintech rivals are next.” Billionaire Jack Ma pushed back against Beijing resulting in Chinese authorities blocking plans for a successful initial public offering. Now Ma’s Ant Group Co. has lost about $70 billion value.
Lastly, “Why it’s hard to go wrong with Bristol Myers Stock,” comes from Barron’s and includes our head of asset allocation and equity research, Dan Eye. Eye is bullish on the underloved pharma company Bristol Myers Squibb. Against peers, its expected growth is comparable but is valued at a discount.
Finance Articles June 2021
Will we see a summer rally in the market? Will the Fed raise interest rates? And will Americans ever return to the office five days a week? As we all search for answers to these questions, take a look at what we’re currently reading at Fort Pitt for insight into the economy and what’s going on in the country:
Our first article, “Most important measure of Fed’s economy: My ‘per-household wealth effect monitor’ for Q1, based on Fed data,” comes from Wolf Street. 50 percent of the U.S. population own essentially no stocks and live in a universe of Fed-created wealth that is not for them.
Bloomberg is the source for our next article, “Americans are done with 5-days a week in the office. Here’s what that means for the economy.” The “donut effect” of COVID-19 has Americans congregating in suburbs and leaving cities but a 5 percent productivity boost is expected post-pandemic.
“Biden & the 1-percent,” comes from ZeroHedge. According to IRS data, after the Tax Cuts and Jobs Act went into effect, the amount taxpayers claimed for itemized deductions dropped by 55 percent.
Our next news item to consume comes from TD Ameritrade Network and features our own Carter Henderson, portfolio specialist and director of institutional development. “Companies to watch: LULU, PNC, DIS,” breaks down companies that have been doing well during the pandemic and how they’ll continue with the reopening in full swing.
“The market right now is siding with the Fed: Analyst,” comes from Yahoo! Finance and includes our head of asset allocation and equity research, Dan Eye. The outperformance of growth stocks compared to value stocks signals the market agrees with the Fed that inflation is transitory.
Finance Articles May 2021
Summer is in sight! And as life starts to return to normal, we know you may have plans to see family and friends after a long absence. We hope you’ll also make some plans to check out what’s going on in the financial world and what we’re currently reading at Fort Pitt:
“The numbers tell us that airline passengers are coming back,” is our first article. This piece comes from ZeroHedge and takes a look at the Transportation Security Administration’s passenger count numbers. If the pace of passenger counts continues as is this year, by August we could surpass the numbers from 2019.
Our second piece, “What sort of business is investment banking,” comes from Economicblogs.org. Investment banks can suffer huge losses at the hands of just a single client or single employee. This is because if you boil it all down, investment banks traffic in risk.
We turn to Wolf Street for our next piece, “It’s getting serious: Dollar’s purchasing power plunges most since 2007. But it’s a lot worse than it appears.” CPI inflation has jumped 7% and is accelerating. Housing, healthcare, and insurance prices are all surging.
Next up, our vice president, Chris Chaney, is quoted in the Pittsburgh Post-Gazette’s, “New Apple credit card makes it easier for families to share credit. But should they?” A new credit card allows up to five people to build their credit histories together. Chaney weighs in, saying you need to treat credit with fear and loathing.
“Wall Street drops on inflation jitters, led by tech stocks,” comes from Reuters and features our head of asset allocation and equity research, Dan Eye. Inflation fears caused a tech sell-off mid-month. Eye shares his insight that if you’re valuing a high-growth company based on its earnings ten years out, those earnings into the future are worth a lot less today at higher inflation levels.
Lastly, I share my insight with the Pittsburgh Business Times in, “What’s next after PNC completes BBVA USA buy? The bank put stock repurchases and dividend increases on hold until after the deal is complete. My guess is it won’t be done until year-end as there is heavy lifting to be done with the system conversions.
Finance Articles April 2021
The April showers (and cold weather) are hopefully over because we are ready for those May flowers! While we wait for the season’s flowers to open and bloom, you can open the below articles now to see what we’re reading at Fort Pitt:
Our first article, “Dramatic round of regulation seen coming for cryptocurrencies,” comes from Bloomberg. The World Economic Forum’s blockchain expert says as there is more and more demand for cryptocurrency, regulators will get more engaged and involved in the space.
Wolf Street is the source of our next article, “What I see as retail landlord, one year after (and we’re still forgiving and deferring rent for our hardest-hit tenants).” Discount stores and supermarkets are thriving while dry cleaners and personal services are still struggling more than a year into the pandemic. And some retailers are looking for new deals.
We’re also reading ZeroHege’s article, “Hapag-Lloyd shelling out more than half a billion dollars for containers.” Labor shortages and surges at U.S. ports are creating a slow turnaround time for shipping containers. One ocean carrier is buying 150,000 containers to offer its customers better service during these delays.
Our head of asset allocation and equity research, Dan Eye, is featured in this Kiplinger piece, “FAANG Stocks: What challenges await these 5 mega-caps?” Clouds are forming above FAANG stocks this year as the digital economy grows and governments want their cut.
“6 tips for managing your 401(k) like a pro” comes from Barron’s and features Nathan Boxx, our director of retirement plan services. If your plan allows for you to make Roth deferrals, jump on that train. This will give you tax-free income in retirement.
Our last article this month, “What it takes to save $1 million for retirement,” is from Yahoo! Finance and features our senior vice president, Chuck Mattiucci. There is no one size fits all approach to retirement planning. Depending on lifestyle, some people will need more than $1 million and others will need less.
Finance Articles March 2021
We hit one year since the World Health Organization declared the coronavirus a pandemic and one year since the stock market bottomed on March 23, 2020. It’s been quite a year! Here’s what we’re reading now:
“JP Morgan is trying to offload ‘big blocks’ of corporate Manhattan real estate,” comes from ZeroHedge. The big bank is looking to sublet 800,000 square feet of office space in New York City and the CEO says the pandemic has potentially led to permanent changes in how they do in-office business.
Bloomberg is giving us our second article, “U.S. commuting at highest since last March as covid cases slow.” The average number of visits to places of work in the U.S. hit its highest level during the last week of February
Next up, a trend emerging from CNBC in “Fewer kids are going to college because they say it costs too much.” A year into the coronavirus pandemic, a survey of high school students reveals the likelihood of attending a four-year college has decreased by almost 20%. The students are putting more emphasis on career training.
“A Las Vegas mall became nearly worthless in six months. It’s probably not the last,” is from Business of Fashion. One mall lost 95% of its value in just six months and a hedge fund principal shares data about why mall liquidations will continue.
Our head of asset allocation and equity research, Dan Eye, is included in this next piece from Barron’s, “Companies are feeling the inflation pinch. What to watch next.” If companies pass on rising costs to customers, that would make inflation more widespread and could have serious implications for stocks.
“What are assets?” is an explainer from Forbes Advisor that features our financial advisor, Katharine Perry. Practically everybody owns assets and there are a few different types and ways to determine the value of your assets.
Finance Articles February 2021
Spring is in sight! During this snowy February, we had quite a bit of time to read interesting articles that caught our attention. Here’s a look at what we’re reading and what we hope you enjoy too:
The first article that caught our eye is, “Largest U.S. mall landlord Simon Property Group sent jingle mail to Deutsche Bank which foreclosed on mall, but got no bids,” from Wolf Street. Simon Property Group is shedding some of its malls by walking away from the mortgages and leaving the lenders to run the properties.
Our own head of asset allocation and equity research, Dan Eye, appeared on Yahoo! Finance for this next piece, “Market recap: Friday, February 19.” Dan joined the hosts and another industry expert to discuss inflation. The fixed income market is looking at a higher growth environment for 2021 and high budget deficits from 2020 needs to be financed.
“‘Inside the industry, we’re all pretty panicked’: Global semi shortage continues to slam auto industry,” is our next article and comes from ZeroHedge. The current semiconductor shortage plaguing the auto industry is expected to drag on for at least six months. With this timeline, hundreds of thousands of vehicles will most likely be put on hold.
ZeroHedge is also the source of our next article, “Inflation phases: From deflation repair to inflation despair.” Investors should keep their eye on three distinct inflation phases; 1. Rising inflation expectations due to fading deflation risk, 2. Early inflation overshoot and risk of rate shocks, and 3. Larger inflation surprises drive higher risk premia across assets.
“PNC shares skyrocket to new heights,” comes from the Pittsburgh Business Times. Charlie Smith himself was consulted for this piece as PNC Financial Services Group’s stock hit a new all-time high in February. Financials rallied on the sharply steeping yield curve and a booming economy will boost loan volumes.
Finance Articles January 2021
Welcome to 2021! Here’s a look at the articles we’re paying attention to in this new year at Fort Pitt Capital Group:
“Pensions swamped in a sea of negative real rates,” comes from Financial Advisor. As the Federal Reserve keeps interest rates at record low levels, pension shortfalls will likely increase to double-digit percentages in the next two years.
Bloomberg gives us our second article, “How did we end up with this chip shortage?” A supply and demand imbalance is occurring between automakers and semiconductor chip makers as companies miscalculated when traditional car production would cease.
And Wolf Street supplies our final articles, “The Amazon empire beefs up its logistics juggernaut,” is first up. Amazon is no longer just leasing airplanes, it now owns planes and is launching its own cargo airline.
“Historic mania in SPACs, IPOs. Huge fees for Wall Street banks. Mega paydays for insiders. Disdain for valuations. Blind faith that ‘this time it’s different’,” is our next Wolf Street article. In the first three weeks of 2021, SPACs (special-purpose acquisition companies) raised more money than all of 2019.
Finance Articles December 2020
We’ve made it through 2020! And whether you’re reflecting on this uncertain year or looking ahead to 2021, be sure to take a look at the finance articles that have caught our eye right now at Fort Pitt Capital Group:
We’ll kick it off with the ZeroHedge article, “Biden will preserve Trump’s China tariffs & trade deal as ‘rapid reset’ of relations looks unlikely.” President-elect, Joe Biden, has told reporters he will not immediately make moves to remove tariffs on China that were imposed by President Trump, nor will he scrap the “Phase 1” trade deal with the country.
Bloomberg serves up our next article, “Rich states uncover tax windfall, undercutting push for aid.” Thanks to the booming stock market this year, some states received tax revenue far beyond what they were expecting.
And Wolf Street gives us, “California ‘Techsodus’: Tech companies, billionaires, millionaires, tech employees flee San Francisco & Silicon Valley,” As more and more tech companies adopt a “work from anywhere” mentality, their executives and employees are quickly leaving California for locations that don’t levy state income taxes.
“How many renters face eviction when the eviction bans end? How much worse is it, compared to the good times,” is our last article and also comes from Wolf Street. Looking at the month of November to compare this year to last year, in 2020, 6.4% of renters were behind one month on their rent, up from 4.8% of renters who were behind in November 2019.
Finance Articles November 2020
The holiday season is here but this one will be unlike what we’ve seen in the past. Here are the finance articles we’re reading during this time at Fort Pitt Capital Group:
“The US government seized $1 billion in bitcoin from dark web marketplace Silk Road,” is our first article and comes from The Verge. An unnamed hacker helped the U.S. Department of Justice empty the digital wallet of the now-shuttered dark web drug marketplace Silk Road. The taking of roughly 70,000 bitcoins was part of a civil forfeiture case.
Bloomberg supplies our second article, “Money-fund rules in crosshairs again as Boston Fed takes aim.” The 2016 regulatory overhaul of U.S. money-market funds aimed to prevent another 2008-like damaging run on these funds. But the coronavirus-related exodus of cash this year showed risk remains.
Next up, we’ve got “Why Simon Property Group & Brookfield Property, #1 & #2 mall landlords, bought J.C. Penney and other collapsed retailers out of bankruptcy,” from WolfStreet. In an effort to keep stores open and paying rent, mall REITs are buying retailers out of bankruptcy court.
“2021: Fastest earnings recovery ever?” from ZeroHedge rounds out our list. Analysts are projecting 2021 will be a record year for S&P 500 profitability and that earnings growth in the year should come from more cyclical sectors like industrials, consumer discretionary, and materials.
Finance Articles October 2020
Here are the latest finance articles grabbing our attention this month at Fort Pitt Capital Group:
“Wall Street versus Main Street: Why the disconnect?” comes from McKinsey & Company. The basis of valuations, the market’s composition, and investors’ expectations are keeping the U.S. stock market standing in the face of real economic turmoil.
For our second article, we look to Yahoo! Finance for, “Biden’s plan to overhaul 401(k) tax breaks could force some companies to cut retirement benefits.” The former vice president wants to level the playing field of tax deferral in traditional retirement accounts. His proposal would benefit people in the lowest two tax brackets, but millions of people could lose plans as a result.
Our next article, “Companies are changing the language in their quarterly reports to appeal to algos,” comes from ZeroHedge. Public companies are figuring out how to talk when a machine is listening. They are changing how they communicate their financial filings and quarterly reports to appeal to artificial intelligence.
And we’ll wrap it up with Wolf Street’s, “Synchrony Financial disclosed radical work-from-home plan, layoffs, and ‘office footprint’ reduction.” Another major company has announced plans for all employees to work from home and even require some employees to work from home permanently.
Finance Articles September 2020
Hello, fall! Here are Fort Pitt Capital Group’s latest finance articles as we welcome some cooler temps:
“Demand is Insane”: NYC movers turn people away, suburban & rural housing snagged up, as big city COVID – exodus accelerates comes from ZeroHedge. Americans are getting out of more expensive real estate meccas like New York and heading to suburbs and rural areas like Vermont.
Our second article, “The wild ride of the FANGMANTIS stocks v. rest of market” comes from Wolf Street. If you look at the Wilshire 5000 index and take out the 10 giant tech stocks, it essentially hasn’t done anything of note for three years.
ZeroHedge also supplies our next article, “Down-to-Earth- aspects of the U.S. economy in near-real-time.” Seated diners are down 49% through September from last year, the air passenger count entering U.S. airport security is down more than 68%, and office occupancy is down 75.4%.
We’re finishing up with an article from Bloomberg, “U.S.-China investment slumps as ties sour, report says. Two-way investment between the U.S. and China reached its lowest level in about nine years during the first six months of 2020.
Finance Articles August 2020
As summer starts to wind down, we’re sharing Fort Pitt Capital Group’s latest finance articles for the month:
Our first article, “Work-from-home unleashes nightmares for office landlords & surrounding businesses. Global Banks at the forefront,” comes from Wolf Street. Global banks are among the first to make changes for their workforce and shift to a long-term work-from-home model. While this transition is for the safety of those who can work from home, commercial property owners may face occupancy difficulties as a result.
“Why Trump is likely to win again” is our next article from The Journal Blog. Swing voters will be key for the winner of the 2020 election. The “New Democratic” party doesn’t appeal to the working class, which could be the difference-maker in November.
Wolf Street supplies our third article, “No payment, no problem: Bizarre new world of consumer debt,” which highlights the unusual occurrence of loan deferral or forbearance. Due to the unprecedented times we’re facing, lenders are allowing borrowers to ask for a deferral or forbearance, and it won’t count as delinquent if consumers can’t make payments on time.
“Manhattan apartment rents plunge 10% in pandemic-field exodus” is our next article from Bloomberg.com, detailing the weakness in Manhattan’s rental market as city-dwellers flee to the suburbs and other boroughs. Data shows that rents declined while vacancies increased significantly over the last few months.
Finally, Wolf Street’s “Foot traffic to ‘place of commerce,’ office occupancy hit by Covid reassurance, persistent work-from-home: Real-time data,” completes this month’s list. Real-time data trackers showcase average daily visits to “points of interest” to understand foot traffic patterns in large metros. This reveals that we are below levels of “normal” compared to January’s data.
