Growth has strongly outperformed value for about 5 years now. Technology has been the major component of appreciation in the market over this 5-year period and 2017 in particular. As an example, through September, the technology sector is up 26% year to date, versus the Russell 2000 Value up only 5.7% as a measure of…
Read BlogLast week the banks reported earnings, the earnings were fine, but as we thought would happen, the stocks sold off a little. We think the fundamentals for the banks are good and getting better. This sector of the market is not expensive, and we prefer it over most of the growth sectors. Please click the…
Read BlogThis week, we start to get third quarter earnings reports with JP Morgan and Citigroup on Thursday and Bank of America and Wells Fargo on Friday. We believe that the reports will be good, but these stocks have recently had a big run and we would expect a pullback in this sector. Please click the…
Read BlogThe proposed tax overhaul was as we expected with the most important part being the corporate rate dropping to 20%. We believe if things are passed the way they are proposed it will be very stimulative. Some of the issues are the non-deductibility of state income tax and property tax, which puts high cost states…
Read BlogLast week, the Federal Reserve did exactly as we have feared with a plan over time to reduce their balance sheet from $4.5 trillion down to $2.5 trillion, and to raise interest rates again by year end. The detail of the plan has the Fed building up to forcing $50 billion per month into the…
Read BlogThe Federal Reserve meets this week and will have a news conference on Wednesday afternoon. We believe the Fed will open the door to another rate hike by year end, and will lay out the plan to reduce their balance sheet. The rate hike is not fully in the market, so this could be a…
Read BlogWe would like to introduce you to two tactical strategies that we believe you will find to be a very useful tool for your client’s equity allocation. Please click the link below to continue reading: PVG – Dynamic Core TTR Introduction (September 2017)
Read BlogThe market reacted positively to a few things on Monday, and broke the lower lows and lower high trend for the S&P 500. It has swung so much the market is in a mini-break out, we would focus on 2500 on the S&P 500 to confirm and now 2478 as a short term support, which…
Read BlogThe things you can count on like clockwork in September are hurricanes and falling stock prices. We all know too well about hurricanes. We believe that the repair and replacement is good for some companies, but a lot of capital is spent to rebuild that takes liquidity out of the financial system and lowers real…
Read BlogFirst, we would like to wish everyone well that may be in the flooded areas of Texas. It truly is incredible the amount of rain, and the hardship it may be having on people. Surprisingly, Yellen’s speech at Jackson Hole never mentioned shrinking the Federal Reserve’s balance sheet. We are now expecting that plan to…
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