3/20/2017 Weekly Market Commentary

  Three steps and no stumble… Technical analyst Edson Gould developed a market rule of thumb known as ‘three steps and a stumble.’ It states stock prices may fall after the Federal Reserve (Fed) raises the Fed funds rate three times in a row without a decline, according to Market Technicians Association.1 The idea is three increases show the Fed is serious about keeping rates at a relatively high level for a significant length of […]

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3/13/2017 Weekly Market Commentary

  Rate hike ahead…maybe. Last week’s U.S. employment report was better than expected. The United States added 235,000 jobs in February, which was a few more than economists had forecast.1 It may seem counterintuitive, but the positive economic data helped push U.S. stock markets lower. The jobs report was a sign the American economy continues to be strong and indicates a rate hike may be on the horizon. Barron’s reported:1 “If anything, the data just […]

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1/9/2017 Weekly Market Commentary

…And, they’re off! Bullish sentiment helped world equity markets get off to a fast start last week.1 Just name a country or region – developed markets, emerging markets, the United States, Latin America, Asia, Europe, the United Kingdom – and it’s likely the area’s benchmark index may have been up for the week.2, 3 Not everyone was in the bullish camp, though. Barron’s reported:1 “The market optimism is understandable. After a long spell of zero […]

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12/19/2016 Weekly Market Commentary

  The Federal Reserve put a hitch in the markets’ giddy-up last week. It wasn’t the Fed’s second interest rate hike in a decade that caused markets to stumble. December’s rate hike was old news before it happened. In mid-December, Reuters reported Fed funds futures indicated there was a 97 percent probability the Fed would raise rates one-quarter percent at its December Federal Open Market Committee (FOMC) meeting. In addition, all 120 economists polled by […]

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12/12/2016 Weekly Market Commentary

  Dad: “Fra-gee-lay” …it must be Italian! Mom: I think that says “fragile,” honey. Dad: Oh, yeah.1 This holiday season, investors’ enthusiasm for U.S. stocks has rivaled old man Parker’s passion for his major-award leg lamp in ‘A Christmas Story.’ Last week, three major U.S. indices hit all-time highs.2 Barron’s reported consumer confidence is helping make this the most wonderful time of the year for U.S. stock markets.2 The University of Michigan’s Index of Consumer […]

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12/5/2016 Weekly Market Commentary

  Flirting with higher interest rates. Last week, yields on 10-year Treasury bonds rose to a 17-month high of 2.44 percent, reported The Wall Street Journal, before retreating to finish the week at about 2.4 percent.1 As we’ve mentioned previously, some professionals suspect the bull market in bonds, which has persisted for more than 30 years, may be headed into bear territory. In part, this is because the U.S. Federal Reserve is expected to increase the […]

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9/26/2016 Weekly Market Commentary

  As expected… The U.S. Federal Reserve left rates unchanged last week and markets celebrated. Across the globe, national stock market indices finished the week higher. In the United States, the Standard & Poor’s 500 Index and NASDAQ gained more than 1 percent. Not everyone was thrilled with the decision, however. Three Federal Reserve presidents cast dissenting votes. All believed interest rates should move higher. That’s the most dissents since December 2014 when even the […]

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9/19/2016 Weekly Market Commentary

  If it’s not one thing, it may be another. Economic data released last week will factor into this week’s Federal Open Market Committee (FOMC) decision on whether to push interest rates higher in the United States. Some of the August data supports the idea economic growth was soft. For example, August retail sales fell more than expected, down 0.3 percent from July. Other data was as expected: U.S. producer prices were flat, which was […]

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