Last week was interesting. As you know, we believe a 10% to 20% decline for equities seems very appropriate to bring the price more in line with the fundamentals. As always, the timing is unknown and the markets may make modest new highs first. There is clearly a significant amount of speculation in the market,…
Last week, the Federal Reserve gave the market exactly what it wanted, a slower and potentially lower increase in interest rates in the second half of the year. Interest rates are still likely to go up, but the Fed seems to acknowledge the strength of the dollar and the disruption it is having on the…
The market is focused on Wednesday, when the Federal Reserve ends its two day meeting and is expected to announce they are planning on removing the word “patient” from their statement on interest rates. Yellen will hold a news conference and is expected to open the door for a rate hike in June. What is…
The Employment report on Friday was much better than expected. Bond prices took a nose dive, as did stock prices in reaction to the strong report. The market expectation quickly moved to the assumption that the Federal Reserve will likely raise interest rates in June rather than in September. In reaction to the change in…
On Monday, the ISM Manufacturing Index was reported at 52.9, which was down from 53.5. We like the ISM Index as it gives us a monthly reading into the health of the U.S. manufacturing sector. Above 50 is expansionary and below 50 it is contracting. The report was a little weaker than expected but still…
The west coast dock workers’ strike is finally over. It had been backing up goods coming in or going out on the west coast to the cost of around 1% growth of GDP. This is good news. We will see the impact on GDP to be reported Friday as the second estimate is released and…
Dynamic Core is a strategy that PVG Asset Management has been managing since 2001, using primarily ETFs using both a fundamental and technical discipline. Beginning the first of this year we have modified our process to simply use technical analysis and are focused on the broad market or the S&P 500 as the investment. By…
We think our Loss Averse Equity Income strategy is coming into favor as our expected 5% dividend yield is substantially higher than yields that can be achieved from the bond market globally, and that of the S&P 500. We expect interest rates to increase over time, and have positioned the portfolio into securities that will…
The stock market has gone from a short term oversold condition to an overbought condition very quickly. The market has rallied about 5% from the low at the end of January. At the same time, earnings estimates for 2015 have been slashed, expecting only 3% growth. You can see from the chart below, the first…
The markets had a nice move up last week, as we mentioned in our previous “Market in a Minute” that the markets were oversold on a short term basis and was either going to pop up or if it continued to get worse, would establish a downtrend. We don’t see anything in the near term…