The Monthly Market Update is part of our ongoing commitment to investor education and research. These posts often spark discussion and provide insight into our perspective on current financial markets and economic events.
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September brought a notable shift in the markets, with the S&P 500 index experiencing a 5% decline. Bonds did not fare much better, as the U.S. Aggregate Bond index fell 3%. This decline was due to the continued increase in longer-term interest rates. The U.S. 10-year treasury yield reached 4.6%, while the 30-year fixed-rate mortgage […]
Financial markets staged a strong rally in February and early March as oil prices rebounded (the strong link with stock prices continues to persist) amid talk of OPEC members discussing coordinated cuts in their production. These rumors have popped up regularly since oil prices began their drop in mid-2014 and none have come to […]
Continue Reading ›Price movements by stocks and oil have continued their symbiotic relationship into the New Year. Stocks and oil prices moved in tandem a record 35% of the trading days in 2015. That ratio jumped to 68% in January. It’s difficult to imagine the US has become a global oil power and that our fortunes […]
Continue Reading ›US stocks barely registered any gains for 2015. Headwinds, ranging from increasing interest rates, a stronger US dollar and the big drop in oil prices, had detrimental effects on US stocks. Specifically, a record 35% of the trading days this year saw the price of oil and the S&P500 index decline in tandem, as […]
Continue Reading ›The terror attacks in Paris and San Bernardino are stark reminders the global war on terror is not receding and will remain with us indefinitely. Stock markets around the world rallied after Paris in a show of resilience that commerce will not be knocked off balance by the terror risk. Readers will […]
Continue Reading ›October 2015 Dashboard US stocks staged their strongest monthly rally in four years in October, as corporate earnings have mostly surprised on the upside and, later in the month, the Fed raised the prospect of increasing short-term interest rates in December. We have been jilted at the altar of late by the Fed (see: September […]
Continue Reading ›September 2015 Economic Dashboard In an effort to help spur spending and economic growth, The Federal Reserve has intentionally held short term interest rates near 0% dating back to the financial crisis in 2008. Many Fed watchers expected a small increase in the rate at its September 17 meeting, but the Fed decided otherwise. They […]
Continue Reading ›August 2015 Economic Dashboard We hope your summer is going well, even as the volatile market since late July has put a damper on the season. Stocks suffered their worst month in August in over five years over worries about China’s growth and ongoing debates about the Federal Reserve’s first interest rate hike since 2006. […]
Continue Reading ›July 2015 Economic Dashboard So, will the Federal Reserve raise short-term interest rates in September or wait until closer to the end of the year? Given the uneven economic data, collapse in commodity prices (often a sign of weaker economic growth ahead) and slowdown in China, will the Fed pull the trigger sooner or later? […]
Continue Reading ›Special Edition Economic Dashboard: Fourth of July Index This year marks the fifth installment of our Fourth of July Index. Total cost this year came down by $1.52 due to gasoline being $0.66 per gallon cheaper. However, excluding the tank of gas, the total cost of food and supplies was $8.38 higher, an 8.8% increase. […]
Continue Reading ›For the second time in two years, and the third time since the end of the Great Recession, first quarter inflation-adjusted gross domestic product (GDP) contracted. The Commerce Department reported in April that first quarter GDP grew at a seasonally adjusted annual rate of 0.2%, but with its first revision in May, it now reports […]
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