Investment Insights

Market Minute - February 14, 2019

Lesson Learned?

Vantage Financial welcomes guest contributions.  Please know the information, opinions and forecasts expressed in the article below are presented from unassociated parties and do not necessarily reflect the opinions of Vantage Financial Partners Limited. ​

by Bob Veres with Inside Information

Investors who reacted emotionally to market movements have been humbled yet again.  When U.S. stocks (measured by the S&P 500 index) fell 13.97% in last year’s fourth quarter, most of us felt in our gut like the market was in the midst of a major bear market collapse.  The downturn would continue into the new year, and take some or (worst case scenario) all of the 9+ year bull market profits with it.

Monthly Markets Memo - January 2019

World Money Small.jpgby Dan Zalipski, CFA 

The Fed raised interest rates as expected in December.  Investors were expecting the Fed to pause any additional rate increases after December’s move, but the Fed forecasted two more rate increases in 2019.  Investors were concerned that continued rate increases could spell trouble for the economy as it was already starting to show some potential signs of slowing. 

Market Minute - January 15, 2019

by Scott Rosenquist, CFA

2018 Recap

The financial markets finished down last year across almost every major asset class.  You know it was a difficult year when cash was the best performing asset.  The year 2018 was almost the exact opposite from 2017, when all asset classes were positive, and cash was the worst performer.  This is quite unusual to say the least. 

Monthly Markets Memo - December 2018

World Money Small.jpgby Dan Zalipski, CFA 

Unless Santa delivers a last-minute present, stocks are looking like a real lump of coal as we close out the year.  Bonds are also struggling this year in the face of rising interest rates, with the Barclays Aggregate Bond index sitting on a loss at the time of this writing.  We may be witnessing some history in the making as the S&P 500 and the Barclays Aggregate Bond index have never both posted negative returns in a calendar year.  This highlights what an unusual year 2018 has been for the markets.

Market Minute - December 14, 2018

by Scott Rosenquist, CFA

Trade and Interest Rates

Financial market headlines continue to be dominated by two topics, tariffs and interest rates.  There were notable events regarding both recently and I’d like to take a minute to discuss them. 

Monthly Markets Memo - November 2018

World Money Small.jpgby Dan Zalipski, CFA 

It goes without saying that the recent volatility has been unsettling as investors have watched 2018 gains evaporate amid the turmoil.  It’s times like these where we must remind ourselves that corrections are a routine occurrence and not necessarily a sign of an imminent prolonged downturn. Corrections, defined as a 10% drop from the most recent peak occur on average once a year.  Smaller market declines between 5-10% are even more frequent averaging about four per year.  Compared to recessions, they are relatively short in duration, but can still linger for several months.  Trying to time moves within a portfolio in anticipation of a correction is difficult due to their frequency and somewhat unpredictable nature.  Coming out of a correction, however, is a prudent time to assess the correction’s impact on a portfolio and rebalance appropriately.  

Market Minute - November 19, 2018

by Scott Rosenquist, CFA

Market Volatility

The month of October brought volatility back to the market as the major equity indices posted negative returns for the month.  This was also seen internationally, as developed and emerging markets were also negative for the month.  Investors were left wondering what caused the spike in volatility and will it continue?

Monthly Markets Memo - October 2018

World Money Small.jpgby Dan Zalipski, CFA 

Market Update

Fed Chairman Jerome Powell recently gave a speech in which he stated that the Fed may need to continue to increase rates, possibly aggressively, especially if inflation begins to quickly move higher.  The yield on the 10-year treasury surged, with yields moving from 3.06% to 3.23% in four days, a big move for treasuries in a short amount of time.  The equity markets can typically withstand rising rates but tend to get nervous when the pace is this fast.  Next, the International Monetary Fund (IMF) reduced their global growth projections citing ongoing trade policy disruptions, specifically mentioning disruptions to NAFTA, Brexit and the European Union, as well as the ongoing trade dispute between the U.S. and China. 

Market Minute - October 15, 2018

by Scott Rosenquist, CFA

Earnings Season

Third quarter earnings will start coming in this week with several of the large banks reporting last Friday.  Earnings reports typically start one or two weeks after the quarter as companies prepare their financial reporting.  This period is also known as “earnings season” and allows investors to analyze company’s financial performance and hear from management regarding strategy and outlook.

Fire in a Crowded Theater

Vantage Financial welcomes guest contributions.  Please know the information, opinions and forecasts expressed in the article below are presented from unassociated parties and do not necessarily reflect the opinions of Vantage Financial Partners Limited. ​

Stock Market Graph Image.jpgby Bob Veres with Inside Information

Yesterday’s market declines—the Dow down 3.15%, the S&P 500 down 3.29% and tech stocks, as represented by the Nasdaq index, off 4.08%--were entirely within the normal range of mini corrections, which we’ve experienced numerous times since March 9, 2009.  But they represent an interesting test of character for the press and market pundits.

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