A Positive Month Despite U.S. Debt Downgrade
Financial markets rebounded in May with the S&P 500 recovering its year-to-date losses. This positive month occurred against a backdrop of new trade agreements, mixed economic signals, and ongoing concerns about U.S. fiscal health. While many reports continued to show that the economy is strong, consumers remained pessimistic about the future. Treasury yields fluctuated throughout […]
Tariffs and the Market
On April 2, President Trump announced new tariffs on nearly all major trading partners. These tariffs are “reciprocal” in that they correspond to tariffs each country imposes on U.S. goods and are on top of previously announced duties. The average tariff rate across countries is 25%, with rates for some as high as 49%. While […]
Trade Wars and Market Risk
Trade headlines continue to weigh on markets as new tariffs go into effect. President Trump recently confirmed tariffs on Canada, Mexico and China, dashing hopes of more extensions or last-minute deals. Additional tariffs are expected in the coming months, including reciprocal ones against countries that impose duties on U.S. goods. Investors worry that a trade […]
How Corporate Earnings Support the Market Rebound
Financial markets have been resilient in recent weeks, almost fully recovering from the swings experienced at the beginning of August. Major stock market indices are once again approaching all-time highs, with the S&P 500 gaining 19.2% year-to-date with dividends, less than half of one percent below its peak. This upward trend has been fueled by […]
How Earnings Can Guide Investors in Difficult Markets
With markets nervous about stubborn inflation, a gradually slowing labor market, and the timing of the first Fed rate cut, investors are more focused on this corporate earnings season than usual. This is because while the economy has avoided a “hard landing” corporate earnings only began to rebound in the second half of 2023. Since […]
Why Cash Is Not a Long-Term Investment
In times of market uncertainty, investors often seek the safety of cash. This has been true over the past several years as markets have swung due to the pandemic, geopolitical events, Fed rate hikes, inflation, gridlock in Washington, technology trends, and more. More recently, the possibility of worse-than-expected inflation and a delay of the first […]
Navigating the Ripple Effects: Oil Prices’ Influence on Inflation, Federal Policies, and Market Dynamics
The stock market has become increasingly jittery, with the S&P 500 experiencing its first 5% pullback of the year. The possibility that the Fed could delay its first rate cut, the decline of technological and artificial intelligence stocks, and tensions in the Middle East have all contributed to the market swoon. In uncertain market environments […]
Economic & Market Commentary Q1 2024
2024 began with debates over a “soft” versus “hard” landing as the Fed attempted to stabilize the economy, as well as over the sustainability of last year’s market rally. Only three months later, those concerns have given way to a calmer environment centered around fading inflation and the Fed’s plans for reducing interest rates. This […]
The Horizon Beyond the Runway: Navigating Success in Investing and Beyond
In the nuanced world of aviation, pilots are taught a lesson of paramount importance as they approach the runway: the instinct to focus on the stretch of tarmac directly in front might seem logical, yet the key to a smooth landing lies in looking far down the runway. This approach, emphasizing faith in the journey […]
2022 Second Quarter: 12-Month Recap
From 2021 to 2022, the global economic and market conditions have two very different stories to tell. Headwinds started to prevail in the latter part of 2021. In the fourth quarter, the U.S. economy enjoyed an increased Gross Domestic Product (GDP) of 6.9%. Inflation (expected to be transitory) was becoming more of an issue with […]