Stocks finished the last week of December relatively flat resulting in a 20+ percent total return for the S&P 500 for 2017. Interest rates were steady with the yield on the 10-year U.S. Treasury ending the year at 2.41 percent, down slightly from a year ago.
Tax Cuts and Jobs Act: Gifts for Investors
This week the S&P 500 was up slightly as investors focused on the passage of the Tax Cuts and Jobs Act which was signed into law by President Trump on Friday morning. Conversely, bonds sold off with interest rates moving higher with the 10-year U.S. Treasury increasing in yield from 2.39 percent to 2.48 percent, which is a substantial move in the span of a week. Bond investors are anticipating an increase in Treasury bond issuance with expected increased deficit spending due to the tax law.
A New Hope … In Congress
Markets moved modestly higher this week with domestic stocks up nearly 1 percent and the benchmark 10-year Treasury was off 2 basis points. As if held up by a mysterious force, Bitcoin set a new high Friday just shy of 18,000.
InvestmentNews Ranks Ferguson Wellman a "Top RIA"
Ferguson Wellman Capital Management has been ranked by InvestmentNews magazine as a top investment company.
InvestmentNews named Ferguson Wellman 11 out of 15 companies in their “Western Success Stories” category in the listing of largest fee-only RIAs as organized by region as based on assets under management. Ferguson Wellman is the only firm to be included from Oregon and is the largest in the Pacific Northwest to be included.
“We are honored to be included in this impressive list of advisers by InvestmentNews. We believe it is a testament to how we have strategically grown our business and consistently focused on a high level of service for our clients,” said Steve Holwerda, CFA, principal and chief operating officer.
Founded in 1975, Ferguson Wellman Capital Management is a privately owned registered investment advisory firm, established in the Pacific Northwest. As of January 1, 2017, the firm manages over $4.5 billion for more than 760 clients that include individuals and families; Taft-Hartley and corporate retirement plans; and endowments and foundations with portfolios of $3 million or more. West Bearing Investments, a division of Ferguson Wellman, serves clients with assets starting at $750,000. (data as of January 1, 2017).
Methodology and Disclosure from Financial Advisor:
InvestmentNews qualified 1,937 firms headquartered in the United States based on data reported on Form ADV to the Securities and Exchange Commission as of Nov. 1, 2017. To qualify, firms must have met the following criteria: (1) latest ADV filing date is either on or after Jan. 1, 2016, (2) total AUM is at least $100M, (3) does not have employees who are registered representatives of a broker-dealer, (4) provided investment advisory services to clients during its most recently completed fiscal year, (5) no more than 50 percent of amount of regulatory assets under management is attributable to pooled investment vehicles (other than investment companies), (6) no more than 25 percent of amount of regulatory assets under management is attributable to pension and profit-sharing plans (but not the plan participants), (7) no more than 25 percent of amount of regulatory assets under management is attributable to corporations or other businesses, (8) does not receive commissions, (9) provides financial planning services, (10) is not actively engaged in business as a broker-dealer (registered or unregistered), (11) is not actively engaged in business as a registered representative of a broker-dealer, (12) has neither a related person who is a broker-dealer/municipal securities dealer/government securities broker or dealer (registered or unregistered) nor one who is an insurance company or agency.
Source: InvestmentNews
Data Additional Disclosures:
InvestmentNews produced this list by surveying all registered investment advisors that filed their ADV with the SEC. Ferguson Wellman (the firm) is not aware of any facts that would call into question the validity of the ranking. The firm does not believe this advertisement is inappropriate and is not aware of any unfavorable rating towards the firm. InvestmentNews pulled data from ADV filings for the ranking. All 12,000 RIAs in the United States were surveyed, then they narrowed the field down to those with assets under management of $250 million or more. For the category we were considered, there were 214 firms that qualified, and the Firm ranked 55 of the 214. Of the firms listed in the total RIA survey and ranking by InvestmentNews, 33 percent fell into the $1 billion or more assets under management category. The rating does not involve client experience and is not indicative of Ferguson Wellman’s future performance. Ferguson Wellman did not pay a fee to participate in this survey.
Tax Reform and the Muni Market
Stocks climbed in the U.S., Asia and Europe as the U.S. government averted a shut down and the jobs report reinforced optimism. The U.S. added 228,000 jobs in the month of November, higher than the expected addition of 195,000 jobs, due to an accelerating hiring trend which economists expect to continue into the next year. The S&P 500 hit new highs today, trading above 2,650.
Good Old Days
It was an eventful week in Washington and on Wall Street. Republicans appeared to be moving along on the tax bill, but a hiccup occurred Thursday evening that has delayed voting until sometime next week. Strong economic data and hopes for a corporate tax cut led the S&P higher by 1.6 percent this week.
A Time to Give Thanks
Another week, another record high for stocks. This has become the drill in 2017, as markets haven’t seen a weekly pullback in the S&P 500 greater than 2 percent in well over a year.
The Calm Before the Storm?
Volatility returned to the markets this week with the S&P 500 declining by about one percent as investors followed political events in Washington, D.C. Interest rates were lower with the 10-year U.S. Treasury declining in yield from 2.36 percent to 2.22 percent.
Taxman
After eight consecutive weeks of positive returns, the S&P 500 declined by 0.25 percent as investors digest another solid earnings season and evaluate the implications and likelihood of the “Jobs Act” becoming law. To add to the confusion, there are substantial differences between the House and Senate version of the bill released on Thursday.
Rudds Quoted in Lake Oswego Review
Philanthropy from the Heart
Lake Oswego's Rudds and Millers will be honored November 13 for their commitment to giving back
Meet the New Boss -- Same as the Old Boss
A normal week sees one or two impactful pieces of news that influence the markets. By all accounts this was no ordinary week on that front, yet the markets have largely shrugged it off.
High Enough?
Friday revealed strong earnings in large cap tech-fueled stocks, resulting in a slightly positive week for the market. This leaves the S&P 500 at another all-time high. Interest rates ticked up as well, as economic data continued to show improvements. The 10-year U.S. Treasury ended the week with a yield of 2.43 percent, up from 2.35 percent.
Musical (Fed) Chairs
Treasury rates and the U.S. dollar climbed while U.S. equities are headed towards six straight weeks of gains. The market appears to be betting on the successful passing of a tax overhaul after the U.S. Senate approved a budget resolution. The bond market fluctuated and ended the week yielding around 2.37 percent, trading up from last week’s level of 2.27 percent.
Dordevic Quoted in The Bulletin
Haunted by Black Monday, Wall Street in Record Territory
Tim Duy was a freshman in an introductory course in economics at the University of Puget Sound. Jon Wolf had just broken loose from a big investment firm to join an upstart, independent firm in Anchorage, Alaska. Dean Dordevic was in asset management with Kidder Peabody on Wall Street.
Q4 2017 Investment Strategy Video
Getting Better All the Time
Stocks finished higher for the fifth-straight week, while bond prices were flat. Although Fed comments and more discussion of tax reform dominated the capital markets headlines, but there was little movement in the large indices.
Runnin' Down a Dream (of Tax Reform)
After eight consecutive days of positive returns, U.S. equities closed slightly lower Friday and finished the week up 1.10 percent. Emerging markets, up 2.75 percent, extended the lead as the best performing asset class of 2017 with a total return greater than 30 percent.
2017 Q4 Market Letter
Give Me Fuel, Give Me Fire
Equities continue their grind harder and higher this week as optimism for economic growth remains. The S&P 500 finished the week up three quarters of a percent resulting in year-to-date gains of over 14 percent. Yields also ticked up resulting in the 10-year Treasury yielding 2.32 percent.
"Growth" May Be Getting Long in the Tooth
As investors digested news of the Federal Reserve's plan to unwind its balance sheet starting in October, both interest rates and equity markets remained unchanged for the week.