Posts Categorized: MARKET THOUGHTS

Peeling Back GDP | January 26, 2018

GDP came in at a lackluster 2.6% for the 4th Quarter, missing expectations of a 2.9% growth rate. Markets did not react as you would expect, but why? GDP was expected to be a strong 2.9% for the 4th Quarter–rounding out a year of accelerating growth.  Instead we got 2.6%…
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Blind Bull Part 2 | January 19, 2018

The markets have grown 5.11% year to date, and this last week helped that along. Economic data, however, did not support the surge. Housing for December was not promising as new housing starts fell 107K. The move, if it proves to be longer term, could be bad for construction employment….
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Rates on the Rise | January 12, 2018

Equities have surged while bonds have retreated. The rate environment has people wondering if “low for long” has finally come to an end. Globally, there seems to be a synchronization in central banker sentiment. 2018 could very well be the year they lean away from accommodation. The US had already…
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Invincible Markets | January 5, 2018

The markets started 2018 much the same way it spent most of 2017; positive economic data and surging equity prices. Economic Data Factory orders increased more than expected, by 1.3% in November. A good indicator leading into the final retail results for December that will be out in the next…
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Year in Review | December 29, 2017

The year was one of the purest in Market performance seen in decades. What lies ahead now that 2017 in officially in the books? A Look Back 2017 had many notable market run ups. In a rarity for a positive year, Large Caps out performed Small Caps. In addition, international…
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Happy Tax Reform Day! | December 22, 2017

Data and fiscal stimulus, in the way of tax reform, were slipped under the tree right before the Holidays, but we did not see the growth you would expect, why? Economic Data Housing data was in focus as existing home sales, housing starts, and home prices surged in November. Much…
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American Productivity | December 15, 2017

This last week we saw valuations increase on the hopes of fiscal stimulus (tax reform) and dovish monetary policy expectations for 2018. WHAT IS MISSING? Psst, the clue is above! FISCAL STIMULUS Typically, fiscal stimulus is reserved during bad economic conditions to assist in the reacceleration of the economy. Not…
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Fed Factor | December 8, 2017

Markets have fully priced in the Federal Reserve Board’s (FRB) anticipated rate hike on Wednesday. So, why will all eyes be on the meeting? Economic Data Data showed continued expansion this past week, but with a tone of moderation. Factory orders experienced a slight fall, but this came in the…
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Taxes, Data, and Bombs | December 1, 2017

Last week saw a rise in volatility. It came during a week where markets surged substantially. Was the surge founded and volatility should calm down? Or will volatility increase from a market move in the other direction? Market data for the week was strong. Home prices rose steadily over the…
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The Turkey Trade | November 24, 2017

The markets surged on the holiday shortened week. Was this due to low volume and vacations or was there truly a reason for the surge? Economic Data For the most part economic data was strong last week. The most notable was a surge in existing home sales (making up 90%…
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