Last week marked the semi-sesquicentennial anniversary of Franklin Delano Roosevelt’s death which sparked many to compare our current financial markets to the Great Depression. As the stock market continues its rapid ascent for a second week and pundits start talking about the shape of the recovery, there is one lesson some overlook from the Depression era — the value of FDR’s fireside chats. During these chats, the president used simple, direct language to convey very difficult news; a format we are keeping in mind.
Fear Is Only as Deep as the Mind Allows
Kingda Ka at Six Flags in New Jersey is the tallest and fastest roller coaster in the United States. Imagine being on that coaster.
Tax Seasoning: SALT and Preparers
April 15 a.k.a. Tax Day for the United States, is fast approaching. As we near the finish line, many Americans are already seeing the impact; the IRS reported in congressional testimony earlier this month that they have issued 2.2 percent fewer refunds compared to the same time last year.
A Tin Star for the Market
On Saturday, March 9, we mark the 10th anniversary of the stock market bottom that started the great bull market we’re now experiencing. Traditionally, tin is the gift given on a 10th anniversary. So in lieu of a gold star, the equity markets deserve a tin star for impressively running up 400 percent since that bottom.
A Tale of Two Headlines
Charles Dicken’s iconic tome illustrates aptly the interplay between earnings news and economic news of late. Every day it seems good earning news is complemented with slowing economic news and vice versa. Recent market volatility has pushed cautious investors to the sidelines and those that remain are riding the markets up and down with every recent news release.
January Is the Market's Groundhog?
This week we experienced something we haven’t in some time: a down week. Stocks struggled to a close, down 3.8 percent with no help from blue-chip names. Alphabet (GOOGL) and Apple reports weren’t favored by Wall Street, driving the stocks down 5.2 and 4.3 percent, respectively.
All Things Being Relative
The slow creep higher in the markets continued this week. The S&P 500 finished the week up 0.12 percent with financials stocks leading the way, up 2 percent. The ADP jobs report on Wednesday and the nonfarm payroll today gave us “not too hot, not too cold” readings.
Move Over Wonder Woman; Yellen Speaks
The broad markets performed as expected this week as the Federal Reserve announced its much expected rate hike Wednesday. The Dow Jones Industrial Average did set a new high after the announcement but finishes the week up only 0.4 percent.
All Quiet on the Western Front
In a week full of geopolitical news, the market showed a bit of malaise. The S&P 500 posted a small loss of 0.4 percent. Bonds were similarly docile with the 10-year U.S. Treasury ending the week off two basis points at 2.3 percent.