The old saying “stock prices follow earnings” was not in effect during 2018. The S&P 500 delivered outstanding earnings growth of 22% during the year. However, this impressive earnings growth coincided with the worst performance for the S&P 500 in over 10 years, along with one of the worst single quarters since 1940. Practically overnight, … Continue reading What Does the Recent US Stock Market Action Mean for 2019?
A market saying is to “sell the news”, implying that by the time news is released, it is already priced into an asset’s price. Exhibit A: On January 24, 2018, a prominent media outlet hyped a headline touting, “The stock market is off to its best start in 31 years and that bodes well for … Continue reading Sell the News – The US Dollar and Multi-Asset Class Investing
A few years ago, a new client asked me to review a “universal” life insurance policy that she bought in the early 1990’s. The insurance company had recently increased her annual premiums by a whopping 32% and the policy would soon lapse unless she opened up her wallet. Suffice it to say, she was equally … Continue reading Universal Life Insurance in a Low Rate Environment
Bond markets in the fourth quarter experienced a significant amount of volatility as investors attempted to gauge the extent of further Federal Reserve tightening and the likelihood of an economic slowdown as we move into 2019. For the full year, the broad US bond market return was flat while yields vacillated dramatically in the final … Continue reading Credit Markets Showing Great Uncertainty
To download a printable version of this article, click here: 201810 OPCM – Marijuana Around this time last year, we wrote an article highlighting the increasing signs of speculation and euphoria we were seeing in the burgeoning cryptocurrency market. Our skepticism had less to do with the merit or potential use of cryptocurrencies, and more … Continue reading Seeing Green?
To download a printable version of this article: 201810 OPCM – The Risk Of Investing In One Asset Class For many decades, the best risk-adjusted returns were found using a multi-asset class investing approach. Historically this discipline, used by most of the top performing large foundations and endowments, enabled investors to achieve equity-like returns with … Continue reading The Risk Of Investing In One Asset Class
To download a printable version of this article: 201810 OPCM – Foreign Currency Conundrum On August 13th, 2018 a headline in the International Business Times read, “Turkey facing currency meltdown and credit crunch fears”. The “meltdown” the article was referencing was a three day, 30% decline in the value of Turkey’s currency, the Lira. Normally, … Continue reading Foreign Currency Conundrum
To download a printable version of this article: 201810 OPCM – Credit Markets, Another Rate Hike The third quarter saw yet another interest rate hike by the Federal Reserve. On September 26th, Fed Chairman Powell announced the Fed Funds target would increase another .25% to a range of 2.0-2.25% and officially removed the term “accommodative” … Continue reading Credit Markets: Another Rate Hike
To download a printable version of this article: 201810 OPCM – Trim Taxes, Increase Cash Flow, or Save Time The Tax Cuts and Jobs Act was signed into legislation last December, and this upcoming 2018 tax filing will be our introduction to how the changes affect us personally. As Q3 comes to a close, we … Continue reading 11 Tips to Trim Taxes, Increase Cash Flow, or Save Time
Growth stocks have outperformed value stocks for the past eleven years in nearly a straight line. Most investors are now dramatically overweight growth stocks and growth sectors like technology,communications, healthcare, and consumer discretionary. Recently our investment team is now finding a record number of potential new investments that are labeled value stocks. In this article … Continue reading The Overcrowded Growth Trade
