We strongly believe that yield oriented stocks are coming back into favor as income from the higher yielding stocks now far out paces the earnings growth of the S&P 500. For the first quarter of 2015 earnings estimates are expect to be down -4.9%, and for all of 2015 earnings for the S&P 500 are…
The Employment report was much lower than expected, which perhaps builds the case for both the bulls and bears. That might sound odd. The bulls need the economy to grow a little less than what the Federal Reserve desires to keep interest rates from rising until at least later in the year. The bond market…
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…