-March 31, 2017 Weekly Market Roundup. On the prospects for tax reform and rising oil prices, major indexes all bounced back after the previous week’s losses, but the technology-heavy Nasdaq Composite Index was the only one to recoup the entirety of its decline. Small cap stocks, which have lagged year-to-date, led the gains; the outperformance of these more aggressive stocks suggests that investor confidence is regaining momentum. Also, energy stocks performed well at midweek as domestic oil prices climbed back above $50 per barrel on news of a smaller-than-expected increase in inventories. Municipal bonds posted positive returns for the week, outperforming Treasuries, which were roughly flat for the week on mixed economic data.
-March 24, 2017 Weekly Market Roundup. U.S. Equity market posted its worst weekly loss of the year after snapping a streak of 109 days without a 1% decline on Tuesday as the focus on health care reform weighed on investor sentiment. Investor skepticism surfaced over the potential failure to pass a new healthcare package and how this could potentially delay pro-growth initiatives, most importantly tax reform and an infrastructure package. Greece Woes, Again - another year, another Greek bailout scare. Like clockwork, Greece missed yet another deadline for unlocking bailout funds this week, which brings it closer to re-entering the “Greek debt crisis” saga we nearly saw in 2015.
-March 24, 2017 Weekly Market Roundup. U.S. Equity market posted its worst weekly loss of the year after snapping a streak of 109 days without a 1% decline on Tuesday as the focus on health care reform weighed on investor sentiment. Investor skepticism surfaced over the potential failure to pass a new healthcare package and how this could potentially delay pro-growth initiatives, most importantly tax reform and an infrastructure package. Greece Woes, Again - another year, another Greek bailout scare. Like clockwork, Greece missed yet another deadline for unlocking bailout funds this week, which brings it closer to re-entering the “Greek debt crisis” saga we nearly saw in 2015.
-March 17, 2017 Weekly Market Roundup. Stocks rose +0.2% for the week to +6.2% for the year, but did not overtake its record high from the start of March this week following the Federal Reserve announcement on Wednesday to increase interest rates for a second time in three months. This is the Fed's third rate increase in the current expansion.
-The Fed moved rates upward by +0.25% today and the S&P 500 index rose in broad participation with the Fed delivering in line with market expectations. According to FOMC Chair Janet Yellen, "I think the trajectory you see as the median in our projections which this year looks to a total of three increases, that certainly qualifies as gradual."
-March 10, 2017 Weekly Market Roundup. The U.S. equity market broke the six-week streak of gains and fell for the first time on uncertainty over upcoming US policy changes, macro concerns surrounding falling oil prices and looming Fed rate hikes. It is important to note that investors have benefitted greatly over the past eight year bull run as the S&P 500 has increased by more than 250% since the market bottom on March 9, 2009.
-The Fed moved rates upward by +0.25% today and the S&P 500 index rose in broad participation with the Fed delivering in line with market expectations. According to FOMC Chair Janet Yellen, "I think the trajectory you see as the median in our projections which this year looks to a total of three increases, that certainly qualifies as gradual."
-March 10, 2017 Weekly Market Roundup. The U.S. equity market broke the six-week streak of gains and fell for the first time on uncertainty over upcoming US policy changes, macro concerns surrounding falling oil prices and looming Fed rate hikes. It is important to note that investors have benefitted greatly over the past eight year bull run as the S&P 500 has increased by more than 250% since the market bottom on March 9, 2009.
-Inasmuch as we are pleased our written 2017 market forecast is playing out according to our expectations, and that we recommended +6% allocation increase to equities at the beginning of January, we do not profess to be market Oracles; yet, we are reassured by someone who is: US stock market not in bubble territory, billionaire investor Warren Buffett recently said. In CNBC interview last week, Warren Buffett, the Oracle of Omaha, declared that stocks are “on the cheap side.” He has played the Trump rally by putting another $20 billion into the stock market since Election Day. Stocks are cheap, he said, because interest rates remain very low. Investors would be very sorry they didn't buy stocks if the 10-year Treasury yield were to stay at around the current 2.3 percent for the next decade, Buffett said. "If interest rates were 7 or 8 percent, then these [stock] prices would look exceptionally high." In short, Buffett finds the dynamism of the U.S. economy to be "unbelievable," and said to investors: "You'd be making a terrible mistake if you stay out of a game you think is going to be very over time because you think you can pick a better time to enter."
-March 3, 2017 Weekly Market Roundup. For the week, the S&P 500 benchmark booked a 0.7% gain, its sixth consecutive weekly advance and the Nasdaq returned 0.4%. Large cap companies outperformed smaller cap companies for fourth straight week; the trend suggests elevated investor caution with the indices near all-time highs. Additionally, Consumer confidence has hit a 15 year high at 114.8 while December's retail sales were up 5.6% over the past year, a better-than-expected gain. On Friday, Federal Reserve Chair Janet Yellen signaled a strong likelihood for a rate hike at the Fed meeting on March 15-16: “Further adjustment of the Federal Funds rate would likely be appropriate.”
Asset Class Performance Snapshot: Month-end February 2/24, Quarter-to-date, Year-to-date & One Year Trailing for equities & bonds:
-March 3, 2017 Weekly Market Roundup. For the week, the S&P 500 benchmark booked a 0.7% gain, its sixth consecutive weekly advance and the Nasdaq returned 0.4%. Large cap companies outperformed smaller cap companies for fourth straight week; the trend suggests elevated investor caution with the indices near all-time highs. Additionally, Consumer confidence has hit a 15 year high at 114.8 while December's retail sales were up 5.6% over the past year, a better-than-expected gain. On Friday, Federal Reserve Chair Janet Yellen signaled a strong likelihood for a rate hike at the Fed meeting on March 15-16: “Further adjustment of the Federal Funds rate would likely be appropriate.”
Asset Class Performance Snapshot: Month-end February 2/24, Quarter-to-date, Year-to-date & One Year Trailing for equities & bonds:
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