Last week the US stock market had its best week since 2014, after an election result that almost nobody saw coming. The Dow Jones Industrials rose about 5% for the week. At the week’s beginning, The Dow went up in anticipation of a Clinton Presidency, then dropped 700 points in Dow futures in a short
Greg Valliere, a leading consultant on how federal policies affect markets and personal finances, shared his insights with a small group of investment advisers last week in Nashville. He called this election the nastiest election of our lifetime and provided forecasts of election scenarios. He did not mince words in his critique of either presidential
Interest rates are unlikely to rise very much in the next few years. That is the message coming through from the Fed’s June 15 meeting and from Chairwomen Janet Yellen’s testimony to Congress this week. This is a notable change in tone over the last few weeks. The Fed capitulated to the realization its forecasts
Stock investors are beginning to brace for a rate rise. The combination of a good jobs report, bond market volatility, and the specter of rate increases contributes to stocks and bonds coming under pressure. What’s good for the economy isn’t necessarily good for stock and bond investors. This is what a good jobs report looks
Last week the Federal Reserve scaled back its view of prospects for the U.S. economy and labor market. Reuters discusses the timing of when interest rates will go higher. Many of our clients have been burned by the brokerage industry. The CFA Institute advocates for Department of Labor proposals to broaden the sweep of individuals
If we had told you 25 years ago--when you were earning 8.5% on a 30 year U.S. Treasury bond—that you would be earning 2.5% today on that same bond, you would have labeled the thought sheer madness. Yet, that is today’s reality. This week we review why low interest rates may be with us for
Markets were rocked last week due to a dramatic drop in oil prices. This week we discuss what to make of it. The plunge in the price of oil should act like a shot of adrenaline to the world economy. But, there will be winners and losers. Overall, the effect of cheaper oil is clearly
Investors have been contending with two trends in the sell-off of recent weeks: anxiety over a change in Fed policy and evidence of a slowdown in the global economy. A strong U.S. economy continues to suggest increases in interest rates in the first half of 2015. At the same time, the rest of the world
Achieving sustainable economic growth in the wake of the financial crisis has been long in coming. Optimistic expectations have been revised repeatedly. Now, it appears recovery finally is gaining a foothold and can be sustained for a while. The U.S. recovery looks sustainable this time. A genuine improvement in U.S. economic conditions seems to have
News from Jackson Hole, Wyoming leads off this week, where central bankers from across the globe met last week. In addition, the analysts from Charles Schwab provide a market perspective, and an overlooked vehicle for saving for retirement is examined. No rate change until U.S. has 2% inflation and strong job market. Each year the