Market Brief – Tuesday 8/20/19

While foreign investors are selling U.S. equities to buy U.S. Treasury bonds, U.S. investors are doing the exact opposite. Stocks fought back against their early declines and Treasury yields fought back against their early increases after the market opened. Due to a lack of liquidity, equity markets are running low on fuel to keep the … Read more

Market Brief – Monday 8/19/19

Stocks continued to rally in early trading after Friday’s strong close as Germany is considering stimulating their economy, China is stimulating by pushing more regional banks to lend, and President Trump is granting Huawei 90 days to do business with U.S. corporations. Treasury yields rose in early trading, but buyers stepped in to halt the … Read more

It’s Always Been About Bonds

The financial services industry is heavily focused on stocks since the financial media and financial advisors are always talking about the latest hot stock. I remember studying for my securities exams and while there was some content on bonds, most of the material and test questions were geared towards stocks. When a newly minted broker … Read more

Market Brief – Friday 8/16/19

Stocks shrugged off the bad news and extended their overnight rally into early trading. Treasury yields rose a bit, but surprisingly, not very much. Look for stocks to attempt to revisit their all-time highs and Treasury yields to rise a bit more in the next couple of weeks. Housing Starts fell in May despite lower … Read more

Market Brief – Thursday 8/15/19

Retail sales didn’t disappoint as July retail sales increased +0.7% which marks the fifth straight month of increases. Amazon Prime Day was a huge contributor to this increase. The retail sales control group, which is used to calculate GDP growth, increase by +1.0% on an annualized basis. The Empire Fed and Philadelphia Fed Manufacturing surveys … Read more

Market Brief – Wednesday 8/14/19

U.S. equities followed Eurozone equities lower in overnight trading as German GDP Growth slid to -0.1% in the second quarter. Germany is the economic powerhouse of the Eurozone, and if they fall into a recession, so too will the rest of the European Union. U.S. import and export prices rose +0.2% in July, but on … Read more

Market Brief – Tuesday 8/13/19

Equities dipped in overnight trading as the German economy continues to slow and tension in Hong Kong remain high. Treasury yields also fell slightly in overnight trading ahead of this morning’s Consumer Price Index release. The Consumer Price Index (CPI) rose +0.3% in July which matched expectations. On an annualized basis, CPI rose +1.8% and … Read more

Market Brief – Monday 8/12/19

After a bullish week of buying, stocks started the week lower on trade war fears and a potential military intervention by China to quell the Hong Kong protests. China is expected to release a long letter tomorrow, or tonight for us, stating that the U.S. should not underestimate China’s will. Buyers are attempting to put … Read more

90 Days to a Recession

While it may be impossible to predict the exact timing of a recession, most experts still think we will not experience an economic downturn until sometime in 2020. Yet, historical data suggests that after the Federal Reserve starts cutting interest rates that a recession is a foregone conclusion. Even though the Fed claims their July … Read more

Market Brief – Friday 8/9/19

Yesterday’s equity rally quickly reversed when the futures markets opened Thursday afternoon after the White House decided to hold off on issuing licenses for U.S. companies who want to do business with Huawei. Stocks further fell in early trading following a comment by President Trump that things were going well with China and we aren’t … Read more