The 10 year German Bund yield is now at 0.023%, so very close to zero, and about to turn negative. The 10 year U.S. Treasury note is 1.63%. We find these yields remarkable. These yields are below the yields of the depressionary period of the 1930’s and 1940’s. This is a serious bubble. Please click…
Read BlogWe are having a good year up 4.52% net of fees through June 7, 2016, with our goal of 7% on average annually. Our goal of 7% provides an investor with roughly a double in performance of a portfolio over a ten-year period. The strategy has generally provided significant diversification and protection in a bear…
Read BlogThe stock market is clearly extended in the short term and in an overbought condition. The internals, in terms of advancing versus declining issues is very good. The advance to the current level, which is just below the prior high, has been broad based, unlike when the high made during May of 2015. Please click…
Read BlogWe think the Federal Reserve made it clear last week, with three board of governors speaking, that they would like to raise rates, and most likely in July. We would expect them to try to do another increase before year end. If the economy is not strong (2% or better), we believe it is a…
Read BlogLast week the Federal Reserve Open Market Committee meeting minutes were released. The data indicated that there was broad base support from Federal Reserve governors for an interest rate hike at the June meeting. Please click the link below to continue reading: Market in a Minute 2016-5-24
Read BlogLast week, the retail sector took a real nose dive. We had expected that the retailers were going to have weak same store sales when they reported earnings for the first quarter. Easter always falls in their fiscal first quarter or around the end of April, but this year Easter was earlier, in March, when…
Read BlogThe Loss Averse Equity Income strategy is up about 1.6% through the first month of the 2nd quarter versus .4% for the S&P 500. Year to date the strategy is up 3.2% net of fees and 4% gross, versus the S&P 500 of 1.75%. This is significant outperformance over a short period of time. If…
Read BlogDuring the third quarter of 2014, the net margins peaked for S&P 500 companies. It clearly was a result of declining oil prices, also by the lack of revenue growth, and lack of the ability of companies to raise prices. It is interesting that on average, in an economic cycle, profit margins generally peak 2-3…
Read BlogLast week the S&P 500 fell -1.26%, not much, but the growth sectors of the market really took a beating, with technology down -3.75% and healthcare down -2.97%. These are growth sectors of the market, where money has been flowing out of and into the value sectors. Please click the link below to continue reading:…
Read BlogProbably the most important economic news this week will be the GDP report on Wednesday, and consensus is expecting growth of .9% for the first quarter.We find the Atlanta Fed to be generally very accurate in their tracking and they now expect .3% GDP. To continue reading please click the link below: Market in a…
Read Blog
