Investment Insights

Monthly Markets Memo - March 2017

World Money Small.jpgby Dan Zalipski & Scott Rosenquist, CFA

Market Update

The post-election rally may be over for now.  Over the past month, the major U.S. Indices are mixed.  Large companies represented by the S&P 500 Index are up a little over 1%.  At the same time, mid and smaller sized companies, represented by the S&P 400 and Russell 2000 respectively, were slightly negative over the past month. 

Market Minute - March 31, 2017

Market Minute Final Blog.pngby Scott Rosenquist, CFA
Free Cash Flow

One sign of a healthy business is the amount of cash it produces from its operations. The cash from operations minus any investments to maintain the business (capital expenditures) is considered free cash flow (FCF).  

Market Minute - March 3, 2017

Market Minute Final Blog.pngby Scott Rosenquist, CFA
Market Valuation and P/E Ratio

The stock market has climbed double digits since the election and now has investors starting to wonder if it has moved too high too quickly.  One of the most common measures of stock market valuation is the price to earnings ratio (P/E).  When you hear in the news or from your neighbor that a stock looks cheap or expensive, they are most likely referring to the P/E ratio. 

Monthly Markets Memo - February 2017

World Money Small.jpgby Dan Zalipski & Scott Rosenquist, CFA

Market Update

The recent rally has resumed after briefly pausing in January.  Over the past month we have seen the equity indices all move higher.  The latest move up is broad, includes developed markets, both domestic and abroad, as well as emerging markets. 

Monthly Markets Memo - January 2017

World Money Small.jpgby Dan Zalipski & Scott Rosenquist, CFA

Market Update

Another year in the books.  From Brexit to the U.S. Presidential Election, 2016 was a year of surprises, some good, and some bad.  The first half of the year saw volatile swings as concerns about the economy dominated the markets sending them into correction territory. 

Market Minute - January 13, 2017

Market Minute Final Blog.pngby Scott Rosenquist, CFA
Dow 20,000

The Dow Jones Industrial Average (Dow) is one of the oldest stock market indices in the world dating back to the late 1800’s.  The index contains 30 stocks of companies from the United States with most of them well known.  The Dow has been approaching the level of 20,000 since late last year, a level it has never reached.  It came within a point of that mark just recently.  Since the Dow contains only 30 stocks it does not provide the best measure of the broad market.  Most institutional investors refer to the Standard & Poor’s 500 when assessing the market. 

Monthly Markets Memo - December 2016

World Money Small.jpgby Dan Zalipski & Scott Rosenquist, CFA

Market Update

It’s beginning to look a lot like Christmas.  Over the past month we’ve seen different parts of the markets make the naughty or nice list.  U.S. equities indices continue to rally, hitting all-time highs, on the prospects of a Trump Administration bringing about higher growth and lower taxes through new policies and initiatives.

Market Minute - December 8, 2016

Market Minute Final Blog.pngby Scott Rosenquist, CFA
Inflation and Financial Markets

The financial markets have been processing the election results for almost a month now and there have been some notable moves.  We’ve seen sector rotation in the equity market from utilities and consumer staples to more cyclical areas including industrials and financials.  In the bond market, the yield on the 10 year U.S. Treasury has moved up sharply above 2%. This move reflects a change in expectations for GDP growth and inflation.  Inflation has been extremely low since the financial crisis and the market is now starting to reflect higher expectations in the future given the potential large increases in government spending through infrastructure.

Monthly Markets Memo - November 2016

World Money Small.jpgby Dan Zalipski 

Market Update

Well, that was unexpected.  Against all consensus expectations and forecasts, Donald Trump has been elected as the next President of the United States.  The market, expecting a Clinton victory, took notice.  Prior to the election, the month of October was somewhat unusual.  The market seemed less concerned with economic reports and earning releases and seemed to be trading at the mercy of the upcoming election.

Market Minute - November 16, 2016

Market Minute Final Blog.pngby Scott Rosenquist, CFA
Market Volatility

Market volatility has been a popular topic among investors this year.  To start 2016, the S&P 500 lost 8% in the first two weeks for its worst start in history.  Then climbed its way back to only experience another surprise with the Brexit vote in June.  Looking forward, the potential volatility from the results of the presidential election last week have probably only begun to work their way through the financial markets.  This will take time as specific details emerge regarding policies and regulations.

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