Our June commentary happened to be timely and fortuitous when I suggested the 5% pullback in the US markets sparked by the Federal Reserve hinting of a bond buying taper was “unwarranted” and an “overreaction” and would be “short-lived” and create a “buying opportunity”. Since then the S&P 500 has risen almost 13% to an all-time high of around 1800. Continue reading “November 2013 Commentary”
The Federal Reserve meeting on Wednesday and Chairman Ben Bernanke’s comments about tapering the bond buying program created a two day sell-off of almost every asset class. With stocks, bonds and commodities seeing across the board selling, one has to wonder why? Continue reading “June 2013 Commentary”
With the US stock market seeing gains in each of the last 4 calendar years and rising 12% so far in 2013, many investors are worried that the stock markets are overvalued. Continue reading “April 2013 Commentary”
It was an amazing start to 2012. The first quarter was almost too good to be true. There was an endless amount of up days, with a few scattered days of down. The S&P 500 ended the first quarter with a 12% return. This was the best first quarter since 1998. Continue reading “April 5th 2012 Commentary”
As we move into the holiday season, the stock market’s attention has drifted away from economic data and earnings reports. The focus is squarely on the travesty that is the world’s politicians and leadership. Daily volatility is driven by reports of the European Union’s inability to come to an agreement on austerity measures for troubled European countries. More recently, the spotlight is on the failures of the congressional “super-committee” to agree to deficit reductions. The disconnect between politicians and reality has always intrigued me, but it is now taking on a life of its own. What does it say for us as a country when our elected politicians cannot agree on $1.2 trillion of deficit cuts when in reality it is $5 to $6 trillion needed to make a difference? I fear that even if we elected new officials to lead our great nation, the results would be the same. I long for the day the markets react on earnings and economic data and not the spectacle that is political sitcom.
As always, I stress that in this ever-changing political and economic environment, sensible diversification is the key to weathering any market
Jason M. Vavra, CPA, PFS
The information contained herein is not considered an offer to buy or sell any securities referred to herein. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual
investors. There is no guarantee that the figures or opinions forecasted in this report will be realized or achieved. Past performance is no guarantee of future results.
This is a quick note on some significant events today.
Most of the people who I have been speaking with recently know that I have been looking for some merger and acquisition activity to add some calm to the market. My thoughts have been that corporate balance sheets are in much better shape than the 2008 financial crisis and comparisons made to that timeframe are unwarranted.
I felt that a few merger and acquisitions would show investors that companies are confident about their own business prospects and do not feel as inclined to hoard the record amounts of cash sitting on corporate balance sheets. The result would be a reduction of the volatile markets we have seen lately and a return to stability.
Today, there were four notable acquisitions made by Google, Cargill, Time Warner Cable and Transocean. Hopefully this is the beginning to the end of the violent swings we have seen daily for the last week and a return to a more fundamental approach to the market.
As always, I stress that in this ever-changing political and economic environment, sensible diversification is the key to weathering any market uncertainties.
Jason M. Vavra, CPA, PFS
The information contained herein is not considered an offer to buy or sell any securities referred to herein. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors. There is no guarantee that the figures or opinions forecasted in this report will be realized or achieved. Past performance is no guarantee of
Which Way are We Headed?
Looking for areas of the market that are showing consistent strength has been difficult over the last few weeks. Money inflows have varied based on headlines highlighting the situation in Libya, economic data and corporate earnings. Almost daily, we are seeing investor’s favoritism rotate between equities, bonds and commodities with no sector showing consistent leadership patterns.
Year in Review, Year in Preview
December 2010 ended on a strong note with the S&P 500 gaining more than 6% for the month. The December rally pushed the S&P 500 to its first back-to-back double-digit annual gains in more than 10 years. We can hope that the momentum continues and 2011 brings another positive year. Continue reading “January 18th 2011 Commentary”
Making Sense of the Recent News
This week provided the investing community with a flurry of significant news events that drove the direction of the markets. There was much attention paid to the election results, the Federal Reserve meeting and the employment numbers. Continue reading “November 5th 2010 Commentary”