October 25, 2016

A Quiet Week Ends With Indexes Up

A quiet week ends with indexes up, but right now, the general market sentiment seems unsure about where it stands and where to go from here. Why did the markets have a sluggish week? Experts last week described the markets as lazy and docile, and we have to agree. If these five days of trading are a movie, it would probably put a lot of people to sleep. On paper, last week seemed to provide plenty of opportunities for market excitement – from major companies’ earnings releases to the European Central Bank’s latest policy announcement. In reality, however, much of what we saw and heard led to little change and few strong reactions. But why? We’d point to a few key occurrences: Earnings reports were mostly good, but few were outstanding. The European Central Bank held interest rates where they are. The presidential election continues to hold the markets in limbo. While last week’s markets seemed more sluggish than normal, a little break from the excitement can be nice sometimes, especially when coupled with increases in all major U.S. indexes. Looking Ahead This week not only moves us ever closer to Election Day, but it also brings more earnings reports and ends […]
September 13, 2016

Stocks Drop on Interest Rate Worries

Stocks Drop on Interest Rate Worries (WEEKLY UPDATE – SEPTEMBER 12, 2016) Stocks Drop on Interest Rate Worries, After trading flat for most of the week, stocks broadly sank Friday on fears of a future rate hike. For the week, the S&P 500 lost 2.39%, the Dow fell 2.20%, the NASDAQ dropped 2.36%, and the MSCI EAFE lost 0.16%.[1] Monetary policy was at the forefront of investors’ minds last week as they continue to calculate the odds of an interest rate increase ahead of the September Federal Reserve’s Open Market Committee (FOMC) meeting. The European Central Bank (ECB) declined to increase its stimulus program, voting to stand pat on interest rates and current bond-buying activity. The decision wasn’t a total surprise as the Eurozone economy has proved resilient after Britain voted to exit the EU. However, the ECB did confirm that it will consider further quantitative easing in 2017 if conditions worsen.[2]  No exit date for Britain has been announced, though the new prime minister has indicated it will not begin before next year.[3] On our side of the Atlantic, surprise comments by a voting member of the Fed increased speculation that a rate hike may come this month.[4]  When […]
April 19, 2016

VIDEO: April 2016 Education Economic Update

April 2016 Education Economic Update March 2016 was interesting for us in the markets. Here is the script for our video. Heritageinvestor Planningisfun Hey Guys, this is Justin Goodbread with Heritage Investors bring you this April 2016 educational economic update. In this video, we’ll talk about some of the economic events that influenced markets in the last month, and give you some insight into what they could mean for you as an investor. Please stay tuned at the end for a required disclosure statement. After several rocky months for financial markets, March turned out several straight weeks of gains, giving investors hope for the Spring. Let’s talk about what happened. After months of strength, the U.S. dollar weakened against other currencies. A strong dollar makes domestic goods more expensive to foreign buyers, which has hurt corporate profits. A comparatively weaker dollar will help make U.S. products more competitive on the global market, which we hope will be reflected in international demand for our goods. Last month was also important for central bank policies. The European Central Bank, Bank of Japan, and Federal Reserve all held meetings to determine monetary policy. In recent years there has been a divide between the […]