The H Group Blog

Investment and Financial Planning news from some of the best in the business.

Weekly Review - July 28, 2014

Guest Post - Monday, July 28, 2014

Summary

  • Economic data was mostly focused on inflation and housing: CPI was up marginally, while housing stats were mixed—remaining below trend for an economic recovery.
  • Stock markets were a mixed bag, with larger-cap stocks performing a bit better than small cap, although very sector-dependent. Bonds were mixed as well, due to a flattening of the yield curve on the week.
 Read Entire Article Here

Question of the Week - July 28, 2014

Guest Post - Monday, July 28, 2014

What's going on with Argentinian bonds? How will the recently released changes for money market funds affect clients?

We have to take a step back at least a decade to understand the unusual set of circumstances that surrounds Argentina's possible upcoming default. This started from their original default of $100 billion worth of debt in 2001-02, which followed IMF-imposed austerity measures, severe economic hardship and some poor political choices. With difficult access to credit markets, the government spent time and effort to devalue their currency, the peso, to further erode the existing peso-denominated debt (note that such efforts would have made USD-denominated debt repayment even more precarious, but they'd already defaulted, so a moot point). This didn't help their international reputation at the time, and trust is still hard to come by.

 Read Entire Article Here

Weekly Review - July 21, 2014

Guest Post - Monday, July 21, 2014

Summary

  • Economic data was mixed to positive on the week, with solid results in some portions of retail sales, as well as the Empire and Philly Fed surveys; while other data, such as housing starts and sentiment, lagged a bit.
  • Markets were relatively flat most of the week, until the Ukrainian plane crash put markets into a tailspin Thursday–that righted itself again to the upside by the week's end. Revenues and earnings for U.S. equities have surprised on the upside so far.
 Read Entire Article Here

Weekly Review - July 14, 2014

Guest Post - Monday, July 14, 2014

Summary

  • It was a light week for economic data domestically, and little new geopolitical news.
  • Equity markets sold off on the week, helped in no way by the troubles of the second largest bank in Portugal, which was having trouble rolling over its debt. In the risk-off environment, bonds gained.
 Read Entire Article Here

Question of the Week - July 14, 2014

Guest Post - Monday, July 14, 2014

With the Dow at 17,000, when is the correction in equities coming? Aren't we about due?

Maybe. But maybe not. But if that type of logic ruled such things, we'd have already experienced one by now. This is the usual set of conditions we face in stock markets—climbing a wall of worry and dreading the worst while enjoying incremental gains in the meantime. We'll never know if a pause happens next week or after another 50% gain—which is why these things aren't possible to plan for. History can sometimes be a guide, but every cycle has its own quirks.

 Read Entire Article Here

Weekly Review - July 7, 2014

Guest Post - Monday, July 07, 2014

Summary

  • Economic data was mixed early in the short week, but several industrial indicators remained in positive territory and the Friday employment report boosted investor spirits.
  • Stock markets gained on par with stronger sentiment. In line with this expected strength, bond yields rose sharply, creating a bad week for fixed income.
 Read Entire Article Here

Question of the Week - July 2, 2014

Guest Post - Wednesday, July 02, 2014

Why is my portfolio trailing the S&P 500? What do I need all this 'diversification' stuff for?

At first glance, this may appear to be a straightforward question.  But as domestic equities have shot up in price over the course of the post-recession recovery, leaving a few other portfolio holdings in the dust, some of our clients have understandably asked us about this in recent weeks.  Here is our investment team's take on an answer:

 Read Entire Article Here

Weekly Review - June 30, 2014

Guest Post - Monday, June 30, 2014

Summary

  • Economic data was mixed, but survey responses showed stronger positive sentiment and housing appears to show some improvement. The final 1st Quarter GDP release was amended downward, but this was largely blamed on weather effects and appears to be reversing for the current quarter.
  • Equity returns were generally negative on the week, as the negative GDP report and Iraq situation weighed on sentiment. In more typical risk-off fashion, bond returns were higher on lower yields across the globe.
 Read Entire Article Here

Weekly Review - June 23, 2014

Guest Post - Monday, June 23, 2014

Summary

  • A very busy week boosted by stronger manufacturing reports from the Northeast region, better industrial production and tighter capacity utilization.
  • Housing sales data were mixed: better sentiments from builders this month but weaker monthly housing starts and building permits in May.
  • The headline CPI rose slightly faster than the consensus view in May; the 12-month increase surpassed 2% for the first time since late 2012.
  • Initial jobless claims came in better than the consensus expectation with a small improvement for the 4-week moving average and lower continuing claims.
  • U.S. equity markets rallied to record highs after the Fed reaffirmed its stance of keeping rates low for a prolonged period.
 Read Entire Article Here

Weekly Review - June 16, 2014

Guest Post - Monday, June 16, 2014

Summary

  • In a slow week for economic data, stats like retail sales were weaker, but PPI also came in flat, which appeared to temper core inflation concerns from prior weeks.
  • Equity markets were largely off, due to increased concerns about violence and possible military action in Iraq and skepticism about European stimulus.
 Read Entire Article Here

* Required





Subscribe to: The H Group SALEM Mailing List

Archive


Recent Posts