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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3/6/2017 Weekly Market Commentary

  It was a grand slam. Major U.S. stock markets were positively euphoric following President Trump’s speech on February 28. Optimism about the new administration’s pro-growth policies propelled the four major U.S. stock indices to record highs, despite a dearth of policy details, reported Financial Times.1, 2 It’s hard to pinpoint exactly why stocks have moved so far, so quickly. However, it appears that mom-and-pop investors have become quite enthusiastic about the asset class according […]

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2/27/2017 Weekly Market Commentary

  Once upon a time, five blind men discovered an elephant. Each man examined a different part of the elephant and formed a unique impression about the animal. One believed an elephant was like a pillar, while another decided an elephant was like a snake.1 In recent weeks, stock and bond markets have been telling different stories, too. Following a rally on Friday, the Dow Jones Industrial Average finished at a record high for the […]

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2/21/2017 Weekly Market Commentary

  Up! Four major U.S. benchmark stock indices closed at record highs for four consecutive days during Valentine’s Day week, reported Financial Times (FT).1 To date, positive corporate earnings and robust investor confidence have offset fiscal and political uncertainty and helped push U.S. stock markets higher, said sources cited by FT.1 With 82 percent of companies in the Standard & Poor’s 500 Index reporting, corporate earnings are up 4.6 percent for the fourth quarter of […]

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2/13/2017 Weekly Market Commentary

  What’s the word ‘phenomenal’ worth? It all depends on who says it. Barron’s shared Wilshire Associates’ calculations which indicated the word was worth about $175 billion – the amount markets gained last Thursday – when President Trump used it to describe the tax plan his administration will deliver “ahead of schedule.” Markets gained another $100 billion in value on Friday. Barron’s reported:1 “While tax reform is definitely coming, a final bill is still a […]

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8/1/2016 Weekly Market Commentary

  Here’s a brain tickler for you: In July 2016, there were four. In June 2016, there were 10. Since 2008, there have been 673! What are they? If you guessed central bank rate cuts, you are on the money. Financial Times reported: “In the eight years since the collapse of Lehman Brothers, the world’s top 50 central banks have, on average, cut rates once every three trading days…Despite a modest global recovery, central banks […]

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6/13/2016 Weekly Market Commentary

  The British may be leaving. The British may be leaving. Last week, the interest rate on 10-year U.S. Treasuries dropped to levels last seen in 2013. Why, you may ask, would bond yields move lower when Federal Reserve policy is to push interest rates higher? The answer can be found across the pond. On June 23, the United Kingdom, a.k.a. Britain, will vote on whether the country should remain in the European Union (EU) […]

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