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Weekly Market Commentary

Market Commentary. March 25, 2019

Wonder what the Federal Reserve’s 40-yard dash time is?

On Wednesday, the Fed juked like an NFL running back and left investors wondering whether they should buy or sell. Heather Long of The Washington Post reported the U.S. central bank...

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Market Commentary, March 18, 2019

Stock and bond markets rallied.

Last week, major U.S. stock indices finished higher for the 10th time in 12 weeks. Bond markets moved higher, too, with the yield on 10-year Treasuries dropping just below 2.6 percent, reported Randall Forsyth of Barron’s. Yields on 10-year Treasuries haven’t been this low since January 2018.

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Market Commentary, March 4, 2019

Is it a soft landing?

Economists use aviation metaphors to describe the results of central banks’ efforts to manage rapidly growing economies. If the Federal Reserve lifts rates enough to prevent the economy from overheating without jolting it into recession, then it has engineered a soft landing, according to Investopedia. (Rate increases that drop a country into recession are hard landings)...

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Market Commentary, February 25, 2019

Investors were pleased with the Federal Reserve’s (Fed) new approach to its balance sheet.

The Fed delivered its semi-annual Monetary Policy Report to Congress last week. The report recapped the events of late 2018 and reiterated the Fed’s intention to “…be patient as it determines what future adjustments to the federal funds rate may be appropriate to support the Committee's congressionally mandated objectives of maximum employment and price stability...”

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Market Commentary, February 11, 2019

Central banks take a turn.

At its first policy meeting of 2019, the U.S. Federal Reserve changed direction. After four rate increases in 2018, Chair Jerome Powell announced interest rates were on hold. Last week, banks in the United Kingdom, Australia, and India followed suit by either reducing rates or cautioning rate reductions were likely, reported Sam Fleming and Jamie Smyth of Financial Times...

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Market Commentary, February 4

And, U.S. stock markets celebrated.

Last week, the Federal Reserve put itself on hold. The Federal Open Market Committee met on Wednesday, January 30, 2019, to discuss the state of the economy and determine policy. After the meeting, Fed Chair Jerome Powell offered a positive assessment of U.S. economic strength that was leavened with a few concerns...

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Market Commentary, January 22, 2019

We’re off to a good start.

Investors who remained steady during December’s wild ride are probably pleased with their decision as stocks have gotten off to a strong start in 2019. Unfortunately, those who reduced their exposure to the asset class may be feeling the sting of missed opportunity...

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Market Commentary, January 14, 2016

People love rules of thumb.


Sometimes, mental shortcuts are helpful. Other times they are not. When it comes to investing, seasonal shortcuts are not uncommon. In fact, January boasts two:
The January Effect explains why U.S. smaller company stocks tend to outperform the market in January. The original theory held that tax-loss harvesting pushed stock prices lower in December...

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Market Commentary, January 7, 2019

Investors will think of the last quarter of 2018 for years to come, but they won’t remember it fondly. The Economist described it like this,

“After a rotten October and limp November, the S&P 500 tumbled in value by 15 percent between November 30th and December 24th. Despite an astonishing bounce of 5 percent the day after Christmas, the index finished the year 6 percent below where it started...”

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Market Commentary, December 31, 2018

Investing during the month of December was like traversing an icy mountain stream. It delivered a staggering shock to the senses that triggered the instinct to, “Get Out!”

When it comes to investing, that instinct is called loss aversion. For many people avoiding a loss is more important than realizing a gain. Simply put, not losing $100 is more important than gaining $100....

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Market Commentary, December 17, 2018

Ouch!

It never feels good when the stock market heads south, and that’s what happened last week. The Standard & Poor’s 500 Index (S&P 500), Dow Jones Industrial Average, and Nasdaq Composite all moved into correction territory...

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Market Commentary, December 10, 2018

We're off to a slow start.


December is usually the best month of the year for the stock market. It has been since 1950...

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Market Commentary, December 3, 2018

Hold on to your hats!

Recently, stocks have delivered a wild ride. During Thanksgiving week, U.S. stock markets took investor uncertainty on the chin, suffering a 3.8 percent drop, which was the worst performance in eight months. Then, last week, stocks reversed course...

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Market Commentary, November 26, 2018

It was a turkey of a week.


The United States and China continued to spar over trade and other issues. An expert from Moody's told Frank Tang of the South China Morning Post (SCMP) the United States-China dispute will not be easily resolved...

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Market Commentary--November 12, 2018

How are you feeling about financial markets?

Some votes are still being counted but investors appear to be happy with the outcome of mid-term elections. Major U.S. stock indices in the United States...

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Market Commentary--November 5, 2018

Stocks recovered some ground last week and then stumbled over unemployment.

Major U.S. stock indices faltered Friday after the Bureau of Labor Statistics (BLS) reported on a popular ‘lagging’ economic indicator...

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Market Commentary--October 29, 2018

Why did the stock market fall when the economy is doing well?

The answer is that one reflects the past and the other anticipates the future. Last Friday's advance estimate from the Bureau of Economic Analysis showed the U.S. economy grew 3.5 percent ...

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