We think the Federal Reserve made it clear last week, with three board of governors speaking, that they would like to raise rates, and most likely in July. We would expect them to try to do another increase before year end. If the economy is not strong (2% or better), we believe it is a…
Read BlogLast week the Federal Reserve Open Market Committee meeting minutes were released. The data indicated that there was broad base support from Federal Reserve governors for an interest rate hike at the June meeting. Please click the link below to continue reading: Market in a Minute 2016-5-24
Read BlogLast week, the retail sector took a real nose dive. We had expected that the retailers were going to have weak same store sales when they reported earnings for the first quarter. Easter always falls in their fiscal first quarter or around the end of April, but this year Easter was earlier, in March, when…
Read BlogThe Loss Averse Equity Income strategy is up about 1.6% through the first month of the 2nd quarter versus .4% for the S&P 500. Year to date the strategy is up 3.2% net of fees and 4% gross, versus the S&P 500 of 1.75%. This is significant outperformance over a short period of time. If…
Read BlogDuring the third quarter of 2014, the net margins peaked for S&P 500 companies. It clearly was a result of declining oil prices, also by the lack of revenue growth, and lack of the ability of companies to raise prices. It is interesting that on average, in an economic cycle, profit margins generally peak 2-3…
Read BlogLast week the S&P 500 fell -1.26%, not much, but the growth sectors of the market really took a beating, with technology down -3.75% and healthcare down -2.97%. These are growth sectors of the market, where money has been flowing out of and into the value sectors. Please click the link below to continue reading:…
Read BlogProbably the most important economic news this week will be the GDP report on Wednesday, and consensus is expecting growth of .9% for the first quarter.We find the Atlanta Fed to be generally very accurate in their tracking and they now expect .3% GDP. To continue reading please click the link below: Market in a…
Read BlogWe are pleased with how our portfolio has been recently performing. For the second quarter in a row we have had positive performance, we generally have very consistent performance. The first quarter was up 1.6%, and up 2.3% net of fees in the fourth quarter. For the combined two quarters a return of 3.9% net…
Read BlogOn the bullish side, bank earnings last week were better than expected and this group has significant upside over the long term. QE in Europe is starting to have an impact, as the European markets are starting to react favorably. Credit spreads have tightened significantly from the recessionary fears in February, making the liquidity better…
Read BlogBoth the Yen and the Euro have been strong lately. It is rather confusing to the financial markets as to why and is attributable to some of the weakness in global markets recently. Both Japan and Europe have negative interest rate policies, which is very negative for their currencies. Please click the link below to…
Read Blog
