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Market Selloff and Investor Fears

Well, Folks:

 

There are several issues that in combination could have triggered the several days of large stock market drawdowns. In the Big Picture arena, I think we have to look at the Fed ’s current activity, which seems to be working at cross-purposes. The fairly well telescoped ending of quantitative easing matched to a fairly visible scheduled of rate rises through most of 2019 are causing concerns to both companies and investors alike. Surprising to many interest rate watchers is the fact that the 10-year bond yield has reached a seven-year high of 3.23%, while the bond yield hit a 4 year high of 3.4%. Apparently, the apprehension to rising rates is not the rate itself but the speed at which the rates appear to be accelerating.

 

What Caused The Market Selloff

Well, Folks:

 

The best market technicians are still busy debating the cause of last week’s selloff.  While we are waiting for their answer I thought I would share some statistics on this ugly occurrence that always seems to occur when we least expect it.

 

Market Correction to Date

Hello, Folks:
 
We have talked about the likelihood of a market correction several times in the past. I have been in the investment business since 1973 and have experienced quite a few corrections in that 45-year span.

An Aging Bull Market

Despite the subject line, the current bull market still is showing some amazing bursts of growth. As the numbers shake out, the second quarter of this year, growth in the economy registered at an impressive 4.2% annualized rate. Part of this performance is probably a surge in...

Shifting Sands

Hi Folks,

 

Late summer is a good time to review our yearly progress and make adjustments in our asset our allocation decisions If needed.

Mid-Year Outlook 2018

Well, folks:

 

It is turning out to be a good year. Despite a modest regression in the first quarter and following a very strong 2017, 2018 is showing good signs. The balance of 2018 once again looks rosier.

 

Market Conditions

Hi, folks:  

 

Economic conditions continue to be strong but are starting to fray on some of the edges. The first quarter, when all the results were in, was somewhat weaker when compared to YOY comparisons. However,

 

Drifting Sideways With Hope

Well, folks:

It should be quite clear that the market as of late has not kept pace with the strength of recent earnings growth.

 

The News; The Good, Bad and No Ugly

 

Well, folks:

 

We did have a bout of market jitters in the first quarter caused by fears of an all-out trade war and some non-farm payroll decreases ( that were probably weather related) that signaled an economic slowdown.

 
 

The Battle Over Trade and Tariffs

Hi folks,

 

I spent a good part of last Friday at Wellington Management in Boston focused on the global markets, trade, tariffs and what could become a protracted and heated exchange between the U.S. and China.