Goodbye and Good Riddance
By Mitch York | April 6, 2022 After a brief flight to quality following Russia’s invasion of Ukraine, U.S. interest rates jumped to three-year highs as inflation fears prevailed. The Federal Reserve approved its first interest rate hike in more than three years and indicated many more to come. Stocks declined sharply during the first […]
November 2021 Insights
Key Observations: A more hawkish Federal Reserve has emerged and no longer views inflation as transitory The yield curve is flattening as the market is pricing in rate hikes, but strong demand persists for longer-term Treasury bonds Economically sensitive stocks sold off in November as the Omicron variant and inflation concerns raised doubts about the […]
Enduring a choppy stock market
Don’t be a greedy chicken There’s no doubt that big drops in equity indexes make headlines. They are often phrased to be sensational: “Biggest weekly decline in 2 years”, or “worst day since May,” or “Stocks fall for a third straight session.” Declines in stock indexes happen because of concerns, worries, and fears over one […]
October 2021 Insights
Key Observations: The Delta variant, supply chain constraints, and consumer sentiment bit into Q3 economic growth The Federal Reserve announced plans to reduce its monthly purchases of Treasury and mortgage-backed bonds Interest rates are still range-bound, offering low yields across the spectrum of traditional fixed income Economic Commentary It has been a mixed bag of […]
September 2021 Insights
Key Observations: Equities experienced their first monthly losses since January with broad, deep declines. New supply chain challenges come front and center as a major headwind. Market pullbacks of 5% and greater are more common than you think. A September to Forget September has historically been the worst month of the year for equities, and […]
Growth Through Innovation – Part 2
Old Dogs, New Tricks: A Deeper Look at Disruptive Innovation. A few months back, we wrote a piece about today’s age of “disruptive innovation,” which is in the process of reshaping many parts of the global economy. We called it a Fourth Industrial Revolution and outlined how emerging technologies may create new models for success […]
August 2021 Insights
Key Observations: • The Covid Delta variant has emerged as a headwind for economic growth. • Growth stocks continue to lead the market forward. • Corporate earnings have crushed estimates, and expectations remain high. Economic Commentary It’s two steps forward and one step back for the economy. After firing on all cylinders through the first […]
Foreign Investing
International Equity: An Important Portfolio Component During the first half of the year, one of the key themes we have been covering in our monthly market commentary is the “re-opening trade.” As the economy re-opened after months of lockdown, value stocks tended to perform better than growth. At the same time, U.S. markets outperformed overseas […]
July 2021 Insights
Fast and Furious… Key Observations: The automobile industry, with a supply and demand imbalance, reflects the broader U.S. economy. Strong demand for goods and services is likely to continue as the financial condition of most Americans has improved considerably over the past year. The two primary economic risks, inflation, and COVID variants, hang over […]
June 2021 Insights
Growth is Dead, Long Live Growth! Key Observations: Growth stocks have rebounded with a record return in June. The financial markets are pricing in “transitory” inflation. The Federal Reserve has calmed inflation fears with a more hawkish tone. Market Commentary Growth is dead! Long live growth! Just when most had settled in with expectations that […]