Month: July 2014

July
30

Provided by: Jon McGraw

Fed Notes – July 30, 2014

The Federal Reserve met today and proceeded according to the recent plan.  The taper continued, with Treasury/MBS purchases being wound down from $35 bil./mo. to $25 bil./mo.  At this pace, QE Fed buys should end by October.  Other comments made in the release alluded to economic strengthening, relative to the difficult winter especially, labor market…

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July
28

Provided by: Jon McGraw

That Tune in Your Head

Anchors aweigh! Put thoughts of the Frank Sinatra and Gene Kelly movie aside. If the Naval Academy fight song is playing in your head, tune it out. The anchors being raised here are setting adrift perceptions that government bonds are always low risk investments. Behavioral finance – a field of study that looks at behavioral…

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July
28

Provided by: Jon McGraw

Market Notes

Stocks were mixed on the week, with inflation coming in at a tempered rate, earnings season continuing.  Large-caps generally outperformed small-caps, which are negative year-to-date.  Sectors leading the way were energy and tech, up nearly a percent, while consumer staples and discretionary stocks lagged with negative results. Developed market stocks in the U.K., Europe and…

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July
28

Provided by: Jon McGraw

Economic Notes: July 28, 2014

Economic data was mostly focused on inflation and housing:  CPI was up marginally, while housing stats were mixed—remaining below trend for an economic recovery. Stock markets were a mixed bag, with larger-cap stocks performing a bit better than small cap, although very sector-dependent.  Bonds were mixed as well, due to a flattening of the yield…

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July
21

Provided by: Jon McGraw

Economic Notes: July 21, 2014

Economic data was mixed to positive on the week, with solid results in some portions of retail sales, as well as the Empire and Philly Fed surveys; while other data, such as housing starts and sentiment, lagged a bit. Markets were relatively flat most of the week, until the Ukrainian plane crash put markets into…

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July
21

Provided by: Jon McGraw

Like a Tragic Russian Spy Novel

Events of the last week could have been plot elements in a Tom Clancy novel. Tragically, they were real and ratcheted geopolitical tensions higher around the globe. On Wednesday, the United States toughened sanctions against Russia. Bloomberg.com reported the new sanctions prevent specific Russian companies from “…accessing U.S. equity or debt markets for new financing…

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July
14

Provided by: Jon McGraw

World Cup Markets

Germany may have clobbered Brazil in the World Cup quarterfinals last week, earning a chance to become the first European team to win the event in Latin America, but things back home in Europe weren’t quite so rosy. First, a sizeable Portuguese bank startled investors when it failed to make an interest payment on its…

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July
14

Provided by: Jon McGraw

Economic Notes: July 14, 2014

It was a light week for economic data domestically, and little new geopolitical news. Equity markets sold off on the week, helped in no way by the troubles of the second largest bank in Portugal, which was having trouble rolling over its debt.  In the risk-off environment, bonds gained. (-) Wholesale inventories for May rose…

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July
07

Provided by: Jon McGraw

America the Beautiful

Happy birthday, United States of America! U.S. stock markets gave Americans plenty of reason to celebrate over the Fourth of July weekend. The Dow Jones Industrials Average earned ‘oohs’ and ‘ahhs’ from investors and pundits as it shot above 17,000 last week (a significant gain from March 2009 when it traded in the mid-6,000 range)….

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July
07

Provided by: Jon McGraw

Economic Notes: July 7, 2014

Economic data was mixed early in the short week, but several industrial indicators remained in positive territory and the Friday employment report boosted investor spirits. Stock markets gained on par with stronger sentiment.  In line with this expected strength, bond yields rose sharply, creating a bad week for fixed income. (-) The ISM manufacturing index…

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