Economy and Trends

Active vs Passive Investment Management

Some people have referred to the year 2019 as the “Everything Rally” for the investment world and the description is accurate. Pretty much every asset class you can think of has beaten its historical return this year. Domestic stocks and international stocks, large-cap stocks and small cap stocks—they have all beaten their historical returns in 2019. Commodities as a whole ...

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Small Businesses Benefit from Fed’s Low Rates

I would imagine that there are many small businesses across America that have never heard of the Federal Reserve Board (the “Fed”), and most, one would assume, have no idea of what they do, especially for the small business community. Borrowing money for your company comes at a cost, and that cost is interest, and the lower the interest rate ...

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The 2019 Trump Boom Made for Difficult Forecasting

With only a few weeks left in the year, the S&P 500 is sitting on a gain of 25.1% for the year, through December 9 that is. If the gain were to remain where it is, 2019 would end up as the third best year of the 21st Century with only 2013 and 2003 providing higher returns. The index gained ...

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Third Quarter Recap: Earnings Will Warm Your Heart

At this point, we are pretty much finished with the third quarter earnings season and for the most part, it was a good quarter for earnings. According to the LipperAlpha Earnings Dashboard, 490 of the S&P 500 constituents have reported earnings through December 4. That means 98% of the results are in. Expectations for the quarter were somewhat tempered with ...

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Danger Signs on the Economy

Last Thursday the October reading for the Leading Economic Index (LEI) was released and it showed a decline of 0.1% for the month. Such a small decline doesn’t seem like a big deal, but it was the third straight monthly decline for the indicator and the September reading was adjusted downward from -0.1% to -0.2%. The cumulative decline over the ...

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Retail Sector Withers Under the Spotlight

Last week I wrote an article about the retail sector and how it was going to be in the spotlight for a week or so. There was the retail sales report for October that was due out on November 15 and there were a number of big retailers set to release earnings. With the U.S. consumer carrying the economy on ...

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Resilient Tech Sector Continues to Set Records

When the trade war started at the beginning of 2018, most investors expected it to take a toll on certain sectors more so than others. Many expected it to hurt the industrial sector and the tech sector more than others. Despite the concerns, the tech sector has continued to climb and has doubled the returns of the overall market. Using ...

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Recession Fears Fade – Gold and Bonds Stabilize

When the Fed first started hinting at a rate cut back in the spring, gold was trading below the $1,300 level. As things heated up in the trade dispute between the U.S. and China, three things happened—stocks fell, bonds rallied, and gold rallied. From the end of April through the end of May, the S&P 500 fell 6.5% as investors ...

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Warren’s National Healthcare Proposal Unmasked as Fantasy

Whenever I undertake a piece regarding Elizabeth Warren I try to preface it with deep breathing exercises, meditation, soft music and low lights to calm my nerves in order to put together cogent thoughts on her polemic financial rhetoric. Okay, I’m starting already. Perhaps it would be best if editorials would not post a picture of Warren. Her mean faced, ...

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