This year has been another good year for the S&P, with a year-to-date total return of 9.9% (as of 6/28/17). Investors are asking, “How have I done versus the index?” thinking predominantly of return and not risk. Very few investors are asking, “How am I protected against the next recession.” The memory of 2008, or 2000 to 2002, or 1973 to 1974, etc. is fading. A recent survey conducted by GoBankingRates found 68% of respondents said their portfolio strategy “DOES NOT ACCOUNT FOR TH… View More
Markets were mixed last week as the Financials sector rallied while Technology lagged. On Wednesday, several banks announced dividend increases and share buybacks; the decisions followed the Federal Reserve’s determination that, for the first time in seven years, all of the banks subject to its Comprehensive Capital Analysis and Review (CCAR), the so-called “stress test,” had passed. Higher yields on Treasury bonds further supported the favorable outlook for financial companies. The techno… View More
Stocks were flat-to-higher last week in relatively quiet trading as investors looked ahead to second quarter earnings season. A rebound in technology stocks drove the NASDAQ to outperform while the energy sector underperformed (more on this in our Market Week commentary). The release of the Senate’s draft version of an Obamacare repeal and replacement bill dominated headlines. Early criticism by Senate Republicans suggests that the proposed legislation may not garner sufficient support to pass… View More
The Federal Reserve did what almost everyone expected today, raising the target range for the federal funds rate by 25 basis points to 1.00% - 1.25%. Here are the key takeaways from today's statement from the Fed, its updated forecasts, its plan on reducing the balance sheet, as well as Fed Chief Yellen's press conference. First, although the market consensus is that the Fed isn't going to raise rates again until 2018, the Fed thinks we still have one more hike in 2017, with the odds of two hi… View More
Markets were flat-to-down this week on mixed economic data and ongoing domestic political turmoil. The technology-heavy NASDAQ trailed the broader S&P 500® Index for the second consecutive week; and, small cap stocks underperformed large caps while consumer-oriented and commodity-related sectors also lagged. On Friday, Amazon announced an agreement to acquire Whole Foods; the news triggered sell-offs among traditional grocers such as Kroger, and non-traditional grocers such as Wal-Mart and … View More