At Ferguson Wellman, we are nearing the end of our Mid-Year Update events season, where we present updates to our yearly Investment Outlook and deepen our connections with clients and the community.
Hop, Skip and a Jump?
Have Yields Peaked?
Paul Volcker assumed the chairmanship of the Federal Reserve in August of 1979 and within a year, had raised the target federal funds rate to an eye-popping 20%. This painful but necessary action broke the back of inflation which had run rampant for the prior decade.
Are We There Yet?
“Are we there yet?” is a familiar back seat refrain that often occurs during long, summertime road trips involving bored children and their beleaguered parents. As we transition through our second COVID-affected summer, this frustration is also felt by investors and other market participants who long for some return to “normal.” Surely, we must all be there by now, right?
Markets Abhor Uncertainty
Assumed to be postulated by Aristotle, “horror vacui” roughly translates to “nature abhors a vacuum.” The financial market equivalent would be “horror incertae,” or “markets abhor uncertainty.”
Stubbed Toe
In recent months, stocks have experienced an impressive rally, resulting in many commentators and analysts creating new and unusual analogies. This week, our favorite is “the market’s new coffee table.”
Shake-Ups
News broke this week that the Trump administration would consider bypassing congressional legislation to change the capital gains taxes rules to index for inflation. The current strategy that is being floated is to use the Treasury department and IRS rather than traditional legislation to redefine capital gains to include only returns in excess of inflation.