11/14/2017 Weekly Market Commentary

  Selling it overseas. Most of the companies in the Standard & Poor’s 500 (S&P 500) Index have reported third quarter earnings per share (EPS), which is the profit earned per share of stock outstanding during the period. Many have done quite well.1, 2 With more than 90 percent of companies reporting, the total EPS growth rate for the S&P 500 has exceeded expectations, reported FactSet. In aggregate, the growth rate accelerated from 3.1 percent […]

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Living longer? Retirees need to prepare to pay for it

As professionals close out their careers today, they have some good news to look forward to: a long post-retirement life. Healthier lifestyles and medical technology advancements have spurred significant growth in life expectancy in recent decades. The downside? Ensuring there is enough in the coffers to pay for those additional years. As Americans live longer and longer, the challenge of planning for retirement is intensified. To read more visit: https://www.biztimes.com/2017/industries/banking-finance/living-longer-2

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10/31/2017 Weekly Market Commentary

  The last full week of October was a box full of surprises. First, U.S. economic growth exceeded expectations. The devastation wrought by Hurricanes Harvey, Irma, and Maria was widely expected to stifle U.S. quarterly growth, according to NPR.1 The Atlanta Federal Reserve predicted 2.5 percent gross domestic product (GDP)* growth for third quarter, down from 3.1 percent the previous quarter. Instead, U.S. GDP grew by 3.0 percent.1, 2 In fact, productivity has been flourishing […]

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10/23/2017 Weekly Market Commentary

  And the hits just keep on coming. Last week was the anniversary of Black Monday. On October 19, 1987, the Dow Jones Industrial Average (Dow) lost 508 points, or more than 20 percent of its value, as it fell from the previous trading day’s closing value of 2,247 to 1,739.1 The culprits behind the historic drop are widely thought to be program trading, high valuations, and market psychology.2 The anniversary didn’t put a hitch […]

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10/16/2017 Weekly Market Commentary

  There’s a new kid in town: narrative economics. Last week, Richard Thaler was awarded the Nobel Prize in economics. His work in behavioral economics and finance recognizes not all economic and financial decisions are made after rational reflection.1 In Nudge, he wrote:2 “The workings of the human brain are more than a bit befuddling. How can we be so ingenious at some tasks and so clueless at others?…Many psychologists and neuroscientists have been converging […]

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10/9/2017 Weekly Market Commentary

  Slow and steady… It has been 332 days since the Standard & Poor’s 500 (S&P 500) Index experienced a 5 percent drop, reported Barron’s. If there isn’t a selloff on Monday or Tuesday, this will become the longest rally without such a drop.1 During this period, the Index has gained 33 percent. Think about that for a moment: 33 percent over 332 days. By Barron’s calculations, the market has gained less than 0.1 percent […]

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10/2/2017 Weekly Market Commentary

  A lot happened during the third quarter of 2017, but not much changed. The bull market in U.S. stocks continued to charge ahead. Traditional measures of valuation continued to suggest the market is overvalued, but some analysts argued it’s different this time. The Economist explained:1 “The current [cyclically-adjusted price-to-earnings] ratio of 31 suggests that stocks are about 50% over-valued – a figure that has only been exceeded in the past 60 years during the […]

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9/18/2017 Weekly Market Commentary

  “In theory, there is no difference between theory and practice, in practice there is.”1 Yogi Berra was talking about baseball, but the concept also applies to diversification, according to the GMO White Paper, The S&P 500: Just Say No. From the title, you might think the authors – Matt Kadnar and James Montier – don’t like U.S. stocks. They do:2 “Being a U.S. equity investor over the past several years has felt glorious. The […]

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9/11/2017 Weekly Market Commentary

  Last week, the aftermath of Hurricane Harvey and potency of Hurricane Irma dominated hearts and minds, but there were some diversions and some welcome news, too. The NFL kicked off its 2017 season with the Chiefs’ win over the Patriots.1 The men’s U.S. soccer team tied Honduras to stay in the running for a World Cup spot.2 And, Sloane Stephens made the jump from 957th best on the women’s tennis tour to U.S. Open […]

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9/5/2017 Weekly Market Commentary

  When it comes to economic growth, the government doesn’t measure twice. It measures three times. Last week, the Bureau of Economic Analysis revised its initial estimate that the gross domestic product (GDP), which is the value of all goods and services produced by a country or region, grew by 2.6 percent during the second quarter of 2017. The second estimate indicated the economy grew by 3.0 percent from April through June. The third and […]

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