Investment Insights

Monthly Markets Memo - June 2017

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

Market Update

Through much of the year the international equity markets have easily outpaced the domestic U.S. equity markets.  This past month, however, saw a break in that trend with the U.S. outperforming international equities as both groups moved higher.  Despite this, both developed and emerging international equity markets are well ahead of their U.S. counterparts on a year-to-date basis.

Monthly Markets Memo - May 2017

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

Market Update

As we work our way through earnings season, companies are broadly reporting growth in both revenues and net income that is higher than what analysts expected.  Despite this positive news, investors have been reassessing their growth and inflation expectations as the feasibility of the Trump administration’s pro-growth agenda is being called into question.  This move has benefited the fixed income markets with yields declining off their recent highs.   

Market Minute - May 5, 2017

Market Minute Final Blog.pngby Scott Rosenquist, CFA
History of the Option Market

Option contracts trace their origins back to ancient Greece where they were used to speculate on the olive harvest.  If someone thought the harvest in a given year was going to be plentiful, they paid the owners of the olive presses for the right to use them in the future.  If they were correct and the harvest was large, then the rights to use those olive presses would be very valuable and could be sold for a profit. 

Monthly Markets Memo - April 2017

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

Market Update

The U.S. Equity markets had a good start to the year adding to the post-election rally.  Much of the performance was attributed to an improving economy and the potential of regulatory and tax reforms contained within the new administration’s agenda.  More recently however, the U.S. equity markets have hit the pause button, seemingly taking a breather while assessing the feasibility of these reforms. 

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. 

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