Market Commentary December 11, 2023

December 11, 2023 The Markets Still exceeding expectations. Last week, the United States Treasury market rallied. Yields fell and bond prices rose as some bond market investors enthusiastically embraced the idea that the Federal Reserve will soon change course. Michael Mackenzie and Rich Miller of Bloomberg explained: “Softening inflation and employment data in the past… Read more »

Market Commentary December 4, 2023

The Markets We’re cycling along. It’s easy to forget that economic activity tends to move in cycles. A full cycle, known as the business cycle, typically includes four stages: Contraction occurs when economic growth slows as an economy produces fewer goods and services. Economic contractions often include recessions. As productivity contracts, it can negatively affect… Read more »

Market Commentary November 27, 2023

The Markets In November, investors were more optimistic than consumers. At the start of November, investors were decidedly bearish. During the week of November 1, the AAII Investor Sentiment Survey found that about 50 percent of respondents were pessimistic about the prospects for stocks over the next six months, and about 24 percent were bullish.… Read more »

Market Commentary November 20, 2023

The Markets Is it done? (We’re not talking about the turkey.) Last week, investors enthusiastically embraced the idea that the Federal Reserve (Fed) could be done raising rates – and that it might even begin to lower them. As conviction about the possibility of rate cuts increased, stock and bond markets rallied, reported Koh Gui… Read more »

Market Commentary November 13, 2023

The Markets Earnings grew in the third quarter. Four times a year, during earnings season, publicly traded companies report how well they performed during the previous quarter. The strength of corporate earnings – also known as bottom-line profits – is one of the economic indicators that investors watch closely. When companies consistently grow earnings, investors… Read more »

Market Commentary November 6, 2023

The Markets Will there be a year-end rally? Last week, there was a lot of speculation about whether the United States will see a year-end stock market rally. Some say yes, and some say no. For example, at Bank of America, “Chief investment strategist Michael Hartnett broke from his usual bearish view to say technicals… Read more »

Market Commentary October 30, 2023

The Markets The Mark Twain Effect? Historically, economic theory was based on the idea that financial decisions were grounded in rational thought. In recent years, behavioral economists have recognized that people don’t always behave rationally. In fact, research has found that investors like shortcuts that help simplify decision-making. While rules of thumb can be helpful,… Read more »

Market Commentary October 23, 2023

The Markets Stay calm and consider the big picture. Today, investors have a myriad of worries that are creating tremendous uncertainty. A September Investopedia survey found investors are concerned about how their investments may be affected by: Inflation (59 percent), The upcoming election (52 percent), A possible recession, (51 percent) Higher interest rates, (51 percent)… Read more »

Market Commentary October 16, 2023

Weekly Market Commentary October 16, 2023  The Markets Markets were resilient. Last week, investors had a lot to process – geopolitics, inflation, consumer sentiment, the possibility of government shutdown – and markets were volatile. Toward the end of the week, some investors were reassured when earnings season kicked off with reports showing major banks posted… Read more »

Market Commentary October 9, 2023

The Markets Financial markets lost ground during the third quarter. While year-to-date returns for the Standard & Poor’s (S&P) 500 Index remain above the historic average, which was 10.24 percent, including dividends, from 1973 to 2022, the rally in U.S. stocks stalled during the third quarter of 2023, reported Lewis Krauskopf, Ankika Biswas and Shashwat… Read more »