George Hosfield, CFA, discusses Ferguson Wellman's quarterly strategy titled, "Inflation's Flame Flickers," which addresses the narrow market leadership, the impact of higher interest rates on inflation and how assets are priced at this stage of the economic cycle.
George Hosfield, CFA, discusses the firm's quarterly strategy titled "Stalemate," which highlights the Fed's ongoing battle to tame inflation along with our views on the health of the banking industry and capital market expectations for the balance of the year.
Director and Chief Investment Officer George Hosfield, CFA, discusses the Fed raising interest rates, peaking inflation and our view on equities and volatility across all asset classes in our Investment Strategy titled, “Balancing Act.”
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.
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.
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.
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.
Philanthropy from the Heart
Lake Oswego's Rudds and Millers will be honored November 13 for their commitment to giving back
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.
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.
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.
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.
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.
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.
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.
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.
As the Western states struggle with wildfires and the Southeastern states get pounded by hurricanes, the stock market quietly made new highs. The S&P rallied this week 1.4 percent, closing in on the psychologically important 2,500. Conversely, bonds felt the swing into equities with rates on the 10-year U.S. Treasury rising 13 basis points to 2.20 percent.
Last week, we sent a notice to clients regarding the Equifax data breach. To read that information, please click here.
The passing of Hurricane Harvey and the imminent landfall of Irma failed to rock the boat for equities, which remain near all-time highs despite puts and takes amid industries being impacted by severe weather events. More remarkable than trade posturing in home improvement and insurance stocks is the observation that benchmark interest rates and the dollar continue to slide.
by Michael Garcia
Chief Technology Officer
Equifax, one of three credit reporting agencies in the United States, reported on Thursday that the company experienced a cybersecurity incident potentially impacting approximately 143 million U.S. consumers.
Ferguson Wellman and West Bearing recognize that many of our clients may have questions as a result of the announcement. While it is still early in the process, we would like to share a few thoughts:
www.creditsesame.com
www.lifelock.com
www.identityguard.com
As always, now is an excellent time to use complex and unique passwords for all of your accounts. We recommend:
Should you have any questions, don’t hesitate to contact me at mgarcia@fergwell.com.
Mark Kralj shares a piece by Financial Advisor magazine regarding the need for a power of attorney at the age of 18.
