Investment Outlook: New Year + New Tax Code = More Growth?

As we look forward to 2018, let us reflect on how remarkable the last twelve months were for the major market indices. Contrary to the usual roller-coaster ride we experience with stocks, 2017 was an amazingly smooth journey to new all-time highs. The S&P 500 was so consistent that the index finished every month of the calendar year [...]

Investment Outlook: Valuations vs. Data

While the temperature outside cools as we move into the fall and winter seasons, stock markets remain red hot. Despite three of the most powerful hurricanes to ever hit the U.S., political divisiveness in Washington, and threats from North Korea, U.S. stocks rose another 4.5% in the third quarter, bringing year-to-date returns on the S&P […]

Our Investment Outlook: All About Growth

Despite distracting headlines out of Washington, domestic equity markets marched to new record highs (for the S&P 500 & Nasdaq) during the quarter. Equity markets focused on the upward trend in GDP growth and robust corporate earnings (up over 15% year-over-year) that recorded the most profitable period in over five years. Historically, such periods of […]

Investment Outlook: Earnings! Earnings! Earnings!

Stocks Fly! Stock markets are off to a strong start in 2017 fueled by healthy earnings growth. As companies in the S&P 500 index begin to report their results for the 1st quarter, aggregate sales and earnings growth are currently up 4.4% and 13.2%, respectively, when compared to last year. Political tailwinds? While much of […]

2016: A Year of Two Halves

The stock market opened the year in a “risk-off” mode over fears of global growth slowing, falling oil prices, and a U.S. corporate earnings recession. By mid-February equities were down more than 10%. Although markets rebounded through the spring, the negative sentiment and volatility persisted for much of the first half. A quiet summer vacation […]

Votes = Volatility

Whether it’s a national election or a Fed vote on interest rates, markets hate uncertainty. Check out what’s been happening over the last quarter and our thoughts on where we go from here. Key themes from the third quarter Low Quality Dominates Brushing aside evidence of a global economic slowdown and political uncertainty, investors appear [...]

Low Rates, Slow Growth

Key themes in the first half of 2016 Brexit The surprise result of the U.K.’s “Brexit” vote to leave the European Union shocked financial markets and left Europe stocks down -3.8% for the quarter. Global equities initially reacted with sharp declines, but recovered into quarter-end to finish up slightly. [...]

Does your crystal ball bounce?

What is happening in the stock market? We currently observe weakening economic conditions and slowing corporate earnings growth combined with elevated equity valuations. With the odds of the U.S. economy slipping into recession increasing and heightened levels of geopolitical risk, we believe it is prudent to focus on capital preservation, reduce portfolio risk, and [...]