16
Jul
2018
What’s Your China Exposure Amid the Trade Skirmish?
One of the interesting things about the current trade skirmish (I’m not willing to call it a war yet), is that we are fighting on multiple fronts. Even though we have tariffs on aluminum and steel from Canada, Mexico, and the European Union, we all know that the primary combatant in this altercation is China. Even more interesting, perhaps, is that we have more exposure to China than ever before,… Read More
10
Jul
2018
Portfolio Insights
We are pleased to provide a digital copy of Portfolio Insights, our quarterly newsletter. Table of Contents: Stock Market Summary Bond Market Review Changes Coming to the S&P 500 The Risk of Recession The Big Picture & Fast Facts Click here to read the issue: Q2 2018 Portfolio Insights
9
Jul
2018
Bond Yields: Still Crazy After All These Years
To my surprise, it’s been more than three years since I wrote about negative yields on bonds throughout the world. In my article, which can be found here, I wrote that bond yields could go a lot lower than I ever thought since I thought that they were ‘zero-bound.’ A year later, I returned to the topic when the yield on 50-year Swiss bonds had a negative yield. The article… Read More
18
Jun
2018
Participant Insights 2Q 2018
Click here to view Participant Insights 2Q 2018.
18
Jun
2018
What Happened to International Stocks?
As we approach the halfway point of 2018, some things are looking very different from last year. Although it has been a bumpier ride compared to last year, US stocks are on track to have another good year as the S&P 500 is up more than 4.5 percent and the Russell 2000 Index is up more than 10 percent. But unlike last year, international stocks have effectively been flat, flipping… Read More
4
Jun
2018
Changes are Coming to the S&P 500
In the old active-versus-passive debate, the S&P 500 serves as the champion fighter in the passive corner. That’s funny, because the S&P 500 is hardly passive. For example, it’s not a list of the largest 500 companies, but a curated list of stocks chosen by the index committee at Standards & Poor’s. Most of the differences between the index and the actual list of the largest 500 companies are relatively… Read More
29
May
2018
Don’t Get Greedy!
I read an interesting thought experiment the other day. The question posed was simple enough: if you knew how much a stock was going to rise in a given year, how much would you bet on it? Taking it another step, if you knew that the stock was going double in a year, would you borrow money and leverage your return? If so, and forgetting margin requirements, how much would… Read More
21
May
2018
Why Aren’t Stocks Higher?
At this point, 93 percent of S&P 500 stocks have announced their first quarter results, which means that earnings season is almost over. The expectations for earnings were relatively high at the beginning of the season, as Wall Street analysts expected that earning would grow by 11.3 percent. In fact, it was a blow out earnings season, with FactSet reporting that the blended average earnings grown at 24.5 percent –… Read More
7
May
2018
Unemployment at 20-Year Lows; Time to Buy?
Market participants and the news media alike are focused on round numbers, whether it’s the hopefully forthcoming Dow 25,000 or the 10-year Treasury crossing three percent last week. Amidst all of the news last week, one round number caught my eye: the unemployment rate crossing below four percent for the first time in nearly 20 years. The chart above shows the unemployment rate, or, more officially U3, for the past… Read More
30
Apr
2018
Cheap Rates
It finally happened. For the first time since 2014, the yield on the 10yr Treasury just traded over 3.0%. For months, many have proclaimed that 3.0% is the Maginot Line that, if crossed, spells impending doom for the markets. While it is easy to get excited about round numbers, the reality is that the economic impact of 3.0% is no different than 2.99%. The Treasury rate that I really find… Read More