Category: Newsletters

Review

The second quarter of 2018 was significantly more volatile than we have seen during the almost 10 year bull market we are currently experiencing. Markets seemed to move on a daily basis depending on the rhetoric surrounding the tariff situation between the US and the rest of the world. In an attempt to avoid volatility due to the trade disputes, investors found some safety in small cap stocks since earnings of large cap multi-nationals could be affected if there is an extended dispute. Fixed income experienced another rough quarter as interest rate rises have a negative effect on bond prices in general. Continue reading “July 2018 Review & Outlook” →

As we entered 2016, the factors that led to the volatility throughout the 2^nd half of 2015 persisted. After one of the worst ever starts to a year, a rally in March led to the S&P 500 ending positive for the quarter.

Uncertainty in the financial markets leads to volatility. There was uncertainty about the price of oil, US interest rates and the overall health of the global economy. Continue reading “April 2016 Commentary” →

Investors and money managers alike were happy to say goodbye to 2015 as the S&P 500 closed the year on the downside for the first time since 2008. So far, 2016 has not fared better in its first week with global markets suffering.

There is much uncertainty and bad news out there to justify the negative sentiment:

1. Oil continues its slide which many believe is a telling sign of a global slowdown
2. There is fear of a slowdown in China and such has seen its stock market halt a few times due to mass selling
3. The US Federal Reserve raised interest rates for the first time since June 2006 and has hinted at 3 or 4 more in 2016
4. North Korea has an H bomb (ok, probably not)

Continue reading “January 2016 Commentary” →

Quarter Review

The volatility we saw in the 4^th quarter of 2014 continued throughout the first quarter of 2015. The primary driver of the volatility was an increased expectation amongst economists that the U.S. Federal Reserve would raise interest rates as early as June. A second factor was sub-par earnings reports that produced a perceived slowdown in US production.

For the quarter, the S&P 500 squeezed out a slight gain of less than one percent. Conversely, the international markets (EAFE Index) produced a gain of over 5%. The shift signaled a belief that the similar European and Japanese monetary policies, which helped US markets for the last few years, are beginning to have the same positive effects across seas. Continue reading “April 2015 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” →