The H Group Blog

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

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

Weekly Review - June 9, 2014

Guest Post - Monday, June 09, 2014

Summary

  • Featured by an unusual correction in the manufacturing ISM, economic data for the week was decent. The more dramatic news came from Europe, where the ECB provided additional easing and elected a new 'negative interest rate' policy, the first of its kind for a major central bank.
  • Equity markets generally rose across the board on positive economic data in the U.S. and ECB easing; this was coincident with higher U.S. interest rates.
 Read Entire Article Here

Weekly Update - June 2, 2014

Guest Post - Monday, June 02, 2014

Summary

  • Economic data looked a bit better, as winter weather problems continue to dissipate towards more normal ordering and manufacturing conditions. However, some data remains lackluster (GDP for the first quarter was revised down into negative territory). The ECB stands poised to ease to stem deflation fears and spur economic growth.
  • Markets reached new all-time highs again, as large-caps outperformed small-caps. Bonds also gained as interest rates fell to their lowest levels in months.
 Read Entire Article Here

Compounding Wealth

Scott Maxwell - Friday, May 30, 2014

One of the biggest (and most fun) parts of our job over the years has been educating savers about the power of compounding. We’ve written a bit about this here before and talked about the “rule of 72” as a way to illustrate how powerful compounding is over a period of years. A recent article in the Journal of Financial Planning puts a small twist on this, breaking the curve caused by compound interest into two parts, an early period when the growth of wealth isn’t very noticeable and a later part when the compounding effect becomes much more dramatic. Read Entire Article Here

Weekly Update - May 27, 2014

Guest Post - Tuesday, May 27, 2014

Summary

  • Stronger reading in May's preliminary Markit PMI index brought optimism to the second half of this year.
  • Housing sales data were mixed: New home sales rebounded in April after two months of declines; and existing house sales were up less than expected, staying well below the unit level in April 2013.
  • Initial jobless claims came in weaker than the consensus expectation with a small improvement for the 4-week moving average and continuing claims.
  • U.S. tech and small cap stocks helped the market approach an all-time high before the long Memorial Day weekend.
 Read Entire Article Here

Weekly Review - May 19, 2013

Guest Post - Monday, May 19, 2014

Summary

  • Economic numbers were mixed, with April figures like retail sales lower, but regional Fed surveys for May showing a bit more promise. Inflation in CPI/PPI was higher than expected, with food price and housing increases being the primary drivers.
  • Markets were mixed, but small cap stocks have suffered in the last two months. Bond continued to rally as treasury yields have hit the lowest levels in several months.
 Read Entire Article Here

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