Market commentary – july 2019
Stocks for this quarter maintained the above-average trend in the year-to-date numbers. The primary market drivers are the Fed activities and the status of tariff discussions with China and Mexico. As the prospects for reduced interest rates and resolution of the tariff negotiations wax and wane, stocks move up and down. The graph below shows […]
2018 Market insights
2018 was a woeful year for investing. All major stock market indexes were down, bonds enjoyed a year-end rally to finish flat, and commodities such as gold and oil fell. Seeing all asset classes drop in unison is unusual and unlikely to continue. Stocks Stocks began the year on solid footing, but fortunes quickly changed […]
Is your cash earning interest?
Interest rates are rising, and yet you may not be earning much on your cash. As financial markets finally begin to reflect a recovery from the crisis of 2008-09, the brokerage industry is changing the way they handle customers’ cash, and investors need to pay attention. Over the past ten years we have become accustomed […]
I Thought Interest Rates Were Going Up – What Happened?
On March 15, 2017, the Federal Reserve increased interest rates for just the third time since the financial crisis in 2008-2009. Investment theory tells us when interest rates rise, bond prices fall, so rising interest rates are bad for bond returns. However, bonds have performed well since the Fed raised rates a few weeks ago… […]
Interest Rates Are On The Rise – What Should I Do About Bonds Now?
There is much talk and concern about increasing interest rates, which will not be good for bond performance. Below are responses to some of the specific questions we have received from clients. Q: Why have interest rates increased since the election? A: Many of the ideas put forth by President-elect Trump are perceived to be […]
You, Your Financial Well-Bring and the Federal Reserve
It’s been nearly a decade in the making, but time has finally come: On December 16, 2015, the U.S. Federal Reserve (the Fed) raised the federal funds rate by 0.25 percent. In and of itself, it’s a small move. But it’s being reported as “a historic moment,” since it’s the first federal funds rate increase […]