September 2021 – Daniel Zalipski, CFA®
They say the markets climb a wall of worry, and this past quarter has been no exception. It is somewhat natural for investors to be on the lookout for the next event that could trigger a dramatic sell-off, even more so when the markets are bouncing near all-time highs. This practice seems to exaggerate the longer the broad market climbs higher without a decent pullback. The longer this type of environment persists, the louder the warnings of selloffs and corrections will get. Will the delta variant send us into a tailspin, or perhaps the proposed tax increases will spook the markets, or will the Fed send us lower?
September 2021 – By Bob Veres
There is absolutely no question that, from a historical standpoint, yields on U.S. government bonds are terrible. 10-year Treasuries that were issued at 1.25% a year are now yielding 1.297%, which is not terrific when the inflation rate is somewhere between 6% and 7%. If you go shorter term, 5-year Treasuries are trading at a yield of 0.788% a year, and 2-year Treasuries are offering a somewhat less-than-generous yield of 0.215%.
August 23, 2021 – Daniel Zalipski, CFA®
Stock prices are influenced by several factors, both technical and fundamental. Technical factors are commonly thought of as external factors that influence a stock’s price, such as liquidity or regulatory action. Fundamental factors tend to focus on a company’s earnings and their valuation; the price investors are willing to pay for their claim of future earnings. As we pass the mid-point of the quarter, it is time to check in on earnings and valuations within the broader market.
August 10, 2021 – Scott Rosenquist, CFA®
July’s employment data released by the Labor Department last Friday beat expectations while the unemployment rate fell to 5.4% from 5.9%. Payrolls increased by 943,000 compared to 845,000 expected by economists. The previous two months were also revised higher by a combined 119,000. Job gains continue to be concentrated in the leisure and hospitality sector (+380K) as the economy reopens. Next month’s report will be closely monitored for any impacts of the delta variant that may not have been captured in July.