Weekly Economic Update February 26, 2018 The Markets (as of market close February 23, 2018) For the second week in a row, stocks closed the week ahead. Major benchmark indexes ended the holiday-shortened week with marginal gains, led by… Read More
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Weekly Economic Update: February 20, 2018
Weekly Economic Update February 20, 2018 The Markets (as of market close February 16, 2018) Stocks rebounded last week following a tumultuous few weeks of significant losses. Led by the Nasdaq, each of the benchmark indexes listed here posted… Read More
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Weekly Economic Update: February 12, 2018
Weekly Economic Update February 12, 2018 The Markets (as of market close February 9, 2018) Volatility has returned to the global equity markets and has triggered a continued selloff over the past week few weeks. The Dow Jones Industrial… Read More
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Weekly Economic Update: February 5, 2018
Weekly Economic Update February 5, 2018 The Markets (as of market close February 2, 2018) Whether it was the start of a market correction or just a blip in what otherwise has been an almost nine-year bull run, equities suffered… Read More
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Weekly Economic Update: January 29, 2018
Weekly Economic Update January 29, 2018 The Markets (as of market close January 26, 2018) Major stock market indexes continue to set records, as the S&P 500 broke its 14th record in January. Favorable corporate earnings reports, a congressional stopgap… Read More
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Weekly Economic Update – January 22, 2018
Weekly Economic Update January 22, 2018 The Markets (as of market close January 19, 2018) Corporate earnings season entered its second week with generally favorable results, which likely drove equities last week, led by the Dow and Nasdaq, which continue… Read More
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Weekly Economic Update: January 8, 2018
Weekly Economic Update January 8, 2018 The Markets (as of market close January 5, 2018) The first week of 2018 saw equities enjoy a strong start to the New Year. Less than a year after breaking the 20000 mark, the… Read More
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Weekly Economic Update: January 2, 2018
Weekly Economic Update January 2, 2018 The Markets (as of market close December 29, 2017) While 2017 surely was a strong year for equities overall, the last week of the year was lackluster. The major benchmark indexes posted week-over-week losses,… Read More
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Weekly Economic Update: December 26, 2017
Weekly Economic Update December 26, 2017 The Markets (as of market close December 22, 2017) Last week saw moderate trading and lukewarm gains. The small caps of the Russell 2000 outperformed the Dow and S&P 500, while the Global Dow… Read More
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Weekly Economic Update: December 18, 2017
Weekly Economic Update December 18, 2017 The Markets (as of market close December 15, 2017) The major stock market indexes closed last week in the black, led by the Nasdaq and the Dow, both of which climbed over 1.00%. Stocks… Read More
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Weekly Economic Update: December 11, 2017
Weekly Economic Update December 11, 2017 The Markets (as of market close December 8, 2017) Last week proved to be a mixed bag of market returns as the large caps of the Dow and S&P 500 posted moderate gains, while… Read More
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Weekly Economic Update: December 4, 2017
Weekly Economic Update December 4, 2017 The Markets (as of market close December 1, 2017) Equities surged for much of last week until an abrupt decline midday last Friday culled some of the earlier gains. Nevertheless, of the major indexes, only the… Read More
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Weekly Economic Update: November 27, 2017
Weekly Economic Update November 27, 2017 The Markets (as of market close November 24, 2017) Stocks rebounded last week in spite of the market shutting down for the Thanksgiving holiday. The major benchmark indexes posted weekly gains, led by the Russell 2000,… Read More
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Weekly Economic Update: November 20, 2017
Weekly Economic Update November 20, 2017 The Markets (as of market close November 17, 2017) Last week saw a mixed bag of returns as the large caps of the Dow and S&P 500 lost value for the second consecutive week,… Read More
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Weekly Economic Update: November 13, 2017
Weekly Economic Update November 13, 2017 The Markets (as of market close November 10, 2017) Trepidation over delays on proposed tax reform took a toll on large cap stocks last week, ending what had been a good run of consecutive… Read More
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Weekly Economic Update: November 6, 2017
Weekly Economic Update November 6, 2017 The Markets (as of market close November 3, 2017) Last week large cap and tech stocks performed well, while small caps took quite a hit. The S&P 500 closed the week posting gains for… Read More
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Weekly Economic Update: October 30, 2017
Weekly Economic Update October 30, 2017 The Markets (as of market close October 27, 2017) Strong third-quarter corporate earnings and an expanding gross domestic product helped push the S&P 500 and Nasdaq, and to some extent the Dow 30, higher… Read More
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Weekly Economic Update: October 23, 2017
Weekly Economic Update October 23, 2017 The Markets (as of market close October 20, 2017) As we all know, the Dow reached 23000 for the first time in its history. Strong corporate earnings and the anticipation of Congress reaching a… Read More
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Weekly Economic Update: October 16, 2017
Weekly Economic Update October 16, 2017 The Markets (as of market close October 13, 2017) Once again the major stock market indices, except for the Russell 2000, increased last week. The large caps of the Dow and S&P 500 enjoyed… Read More
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Weekly Economic Update: October 9, 2017
Weekly Economic Update October 9, 2017 The Markets (as of market close October 6, 2017) Equities continued to surge last week as the major benchmark indexes posted notable gains – despite a late Friday downturn. Only the Global Dow failed to increase… Read More
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Weekly Economic Update: October 2, 2017
Weekly Economic Update October 3, 2017 The Markets (as of market close September 29, 2017) The large caps of the Dow and S&P 500 closed last week with moderate gains, while small caps of the Russell 2000 enjoyed substantial gains…. Read More
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Weekly Economic Update: September 25, 2017
Weekly Economic Update September 25, 2017 The Markets (as of market close September 22, 2017) The equity markets ended last week mixed, with the large caps of the S&P 500 and Dow posting modest gains, while the tech-heavy Nasdaq fell… Read More
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Weekly Economic Update: September 18, 2017
Weekly Economic Update September 18, 2017 The Markets (as of market close September 15, 2017) Stocks followed the prior week’s plunge by surging ahead last week. The small caps of the Russell 2000 led the way, followed by the… Read More
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Weekly Economic Update: September 11, 2017
Weekly Economic Update September 11, 2017 The Markets (as of market close September 8, 2017) Retail gas prices surged as Hurricane Harvey forced refineries to shut down, leading to curtailed petroleum shipments. Higher gas prices cut into investors’ pockets, prompting… Read More
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Weekly Economic Update: September 5, 2017
Weekly Economic Update September 5, 2017 Last Week’s Economic Headlines The latest report on the second-quarter gross domestic product proved to be very solid, as the GDP climbed to 3.0% – 0.4 percentage point higher than the first estimate. The… Read More
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Weekly Economic Update: August 28, 2017
Weekly Economic Update August 28, 2017 The Markets (as of market close August 25, 2017) Amid a scarcity of economic data and the lightest trading levels of the year, stocks managed to end the week in positive territory. The… Read More
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Weekly Economic Update: August 21, 2017
Weekly Economic Update August 21, 2017 The Markets (as of market close August 18, 2017) Last week saw domestic and global conflicts heighten investors’ concerns, pushing stocks lower in what was a slow week for trading. The Dow lost… Read More
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Weekly Economic Update: August 14, 2017
Weekly Economic Update August 14, 2017 The Markets (as of market close August 11, 2017) Investors may have been disturbed by the rising tensions between the United States and North Korea last week, resulting in a shift from stocks to long-term… Read More
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Weekly Economic Update: August 7, 2017
Weekly Economic Update August 7, 2017 The Markets (as of market close August 4, 2017) Last week ended with a mixed bag of stock market performances. The Dow, influenced by a favorable jobs report and strong corporate quarterly earnings, surged… Read More
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Weekly Economic Update: July 31, 2017
Weekly Economic Update July 31, 2017 The Markets (as of market close July 28, 2017) Stock indexes were mixed, despite a rise in energy stocks following Saudi Arabia’s promise to cut back oil production. Technology shares fell, which hampered both… Read More
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Weekly Economic Update: July 24, 2017
Weekly Economic Update July 24, 2017 The Markets (as of market close July 21, 2017) Favorable corporate earnings reports helped boost the stock market last week. Low inflation may be influencing investors to move away from Treasuries, as yields fell… Read More
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Weekly Economic Update: July 17, 2017
Weekly Economic Update July 17, 2017 The Markets (as of market close July 14, 2017) With consumer prices holding steady, inflation appears to be stagnant, which bodes well for the Fed holding interest rates at their current level. This may have… Read More
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Weekly Economic Update: July 10, 2017
Weekly Economic Update July 10, 2017 The Markets (as of market close July, 7, 2017) Stocks ended last week higher, despite falling energy shares. The Dow and S&P 500 rose last Friday on the heels of June’s strong labor report. Of the other… Read More
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Weekly Economic Update for July 3, 2017
Weekly Economic Update July 3, 2017 The Markets (as of market close June 30, 2017) Last week was not a positive one for equity investors. In a week of heavy trading, the Dow and S&P 500 each lost value and the… Read More
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Weekly Economic Update June 26, 2017
Weekly Economic Update June 26, 2017 The Markets (as of market close June 23, 2017) A drop in energy shares is keeping the large cap indexes of the S&P 500 and Dow in check, although both benchmarks posted moderate weekly gains…. Read More
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The Markets (as of market close June 16, 2017)
Weekly Economic Update June 19, 2017 The Markets (as of market close June 16, 2017) The Fed raised interest rates based on what it perceived as favorable labor and economic reports, inflation is definitely receding and the housing market has stalled…. Read More
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The Markets (as of market close June 9, 2017)
Weekly Economic Update June 12, 2017 The Markets (as of market close June 9, 2017) The major indexes produced mixed results last week. The large-cap Dow gained a little, while the small-cap Russell 2000 jumped over 1.0% by last week’s… Read More
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BWFA WEEKLY ECONOMIC UPDATE: THE MARKETS (AS OF MARKET CLOSE JUNE 5, 2017)
Weekly Economic Update June 5, 2017 The Markets (as of market close June 2, 2017) New highs were reached by the S&P 500, the Dow, and Nasdaq as stocks rose for the second week in a row. The small-cap Russell… Read More
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BWFA WEEKLY ECONOMIC UPDATE: THE MARKETS (AS OF MARKET CLOSE MAY 22, 2017)
Weekly Economic Update May 22, 2017 The Markets (as of market close May 19, 2017) A rally late last week pulled equities higher, but not enough to overcome a midweek tumble. Only the Global Dow posted a slight gain… Read More
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BWFA WEEKLY ECONOMIC UPDATE: THE MARKETS (AS OF MARKET CLOSE MAY 5, 2017)
Both the S&P 500 and Nasdaq reached record highs last week. Only the Russell 2000 ended the week in negative territory. While the economic news last week was mixed, a strong labor report was apparently enough to offset stagnant price… Read More
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The Markets (as of market close April 28, 2017)
The Markets (as of market close April 28, 2017) Better-than-expected quarterly corporate earnings reports, a sign of sustained strength for many large companies, have pushed stocks higher, especially in the tech heavy NASDAQ. All benchmarks had a positive week… Read More
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The Markets (as of market close April 21, 2017)
The Markets (as of market close April 21, 2017) Better-than-expected earnings reports for the first quarter helped push stocks higher last week. The small-cap Russell 2000, which had fallen below its end-of-year closing value, jumped 2.57% for the week… Read More
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The Markets (as of market close April 14, 2017)
The Markets (as of market close April 14, 2017) With the United States and many global markets closed for Good Friday, stocks ended the short trading week lower. Trading volumes were low for much of the week, as investors may… Read More
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The Markets (as of market close March 24, 2017)
Uncertainty over whether Congress would pass a new health-care law, coupled with the prospects of additional interest rate hikes later in the year, may have weighed on investors’ minds as stocks tumbled early last week. BWFA will look closely at… Read More
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The Markets (as of market close March 3, 2017)
Following President’s speech to Congress last Tuesday evening, stocks soared Wednesday before retreating Thursday and Friday while bond yields soared, possibly in response to Fed Chair Janet Yellen’s indication that interest rates are likely to be raised when the Committee next meets later this month. The price of… Read More
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The Markets (as of market close February 27, 2017)
Most of the benchmark indexes listed here rallied by the close of the market last Friday to finish ahead for the week. The Dow led the way by marking its 11th consecutive day of positive gains, followed by the S&P 500, which… Read More
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The Markets (as of market close February 17, 2017)
Equities closed last week in positive territory, as several of the indexes listed here posted record gains. Some positive economic news, particularly from FOMC Chair Janet Yellen, and favorable corporate earnings reports may have enticed investors to stay in the… Read More
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The Markets (as of market close February 3, 2017)
Stocks fell early last week, with the Dow dropping below 20000, while yields on long-term Treasuries receded as prices climbed with increased demand. However, news that the Fed was not raising interest rates this month, coupled with a favorable jobs… Read More
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The Markets (as of market close January 27, 2017)
The Markets (as of market close January 27, 2017) The Dow reached 20000 for the first time ever as favorable earnings reports coupled with anticipated pro-business policies apparently spurred trading, although a relatively weak GDP report at week’s end may… Read More
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The Markets (as of market close January 13, 2017)
The Markets (as of market close January 13, 2017) The past few weeks have seen the markets experience some volatility following several weeks of post-election gains. The Dow fell for the second time in the past three weeks, while the… Read More
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The Markets (as of market close December 16, 2016)
The fallout from the increase in the federal funds rate saw bond yields rise, with the yield on 10-year Treasuries hitting a 2-year high. Bond prices tend to fall (and yields rise) when interest rates increase. Lender rates from financial… Read More
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The Markets (as of market close December 9, 2016)
Following a week of tepid movement in the major stock market indexes, equities picked up the pace last week. Growth in financial company and bank stocks led the way as both the large-cap Dow and S&P 500 rose moderately. Some… Read More
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The Markets (as of market close December 2, 2016)
Robust gains that marked the last few weeks turned to modest declines last week. Gains in energy shares, following OPEC’s announcement to cap production, weren’t enough to totally offset a regression in small-cap and technology stocks. Both the Russell 2000… Read More
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The Markets (as of market close November 18, 2016)
Treasury yields continue to climb as the 10-year rate jumped 20 basis points for the week while exceeding last year’s closing yield for the first time in 2016. The dollar has been keeping pace with rising bond yields, which is… Read More
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The Markets (as of market close November 4, 2016)
Even a good jobs report wasn’t enough to steady investors last week, as stocks lost value from the prior week. Oil prices fell midweek following a report that crude oil inventories are larger than expected. While OPEC leaders agreed to… Read More
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The Markets (as of market close October 28, 2016)
As the presidential election draws near, news about the candidates may be affecting the markets. Word of an FBI investigation into more Clinton emails, coupled with some earnings reports that were weaker than expected, sent equities into the red for… Read More
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The Markets (as of market close October 21, 2016)
Last week began with a whimper as equities closed down (the Dow fell 0.3%), while the 10-year Treasuries yield dropped 4 basis points and bond prices increased. Oil (WTI) fell below $50 per barrel before rallying to around $50.50 per… Read More
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The Markets (as of market close September 30, 2016)
Last week equities started off well enough, still feeding off the Fed’s decision to leave interest rates alone for the time being. But fear of financial instability for one of the world’s largest banks may have prompted many investors to… Read More
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The Markets (as of market close September 23, 2016)
Buoyed by news from the Fed, as well as the Bank of Japan, that measures intended to stimulate the economy would continue — at least in the short term — U.S. stocks and U.S. bonds posted gains for the week…. Read More
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The Markets (as of market close September 16, 2016)
Volatility in the markets reigned last week as each of the indexes enjoyed gains early in the week, only to give most of them back by last week’s end. The Dow and S&P 500 closed last week only slightly ahead… Read More
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The Markets (as of market close September 9, 2016)
The Markets (as of market close September 9, 2016) Equities indexes rebounded early last week as lackluster economic reports in the labor and manufacturing sectors, coupled with a falling dollar, appear to be fueling speculation that the Fed won’t be… Read More
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The Markets (as of market close September 2, 2016)
Trading continues to be light heading into the Labor Day weekend. Stocks finished modestly higher for the week, buoyed by last Friday’s favorable employment report. The price of crude oil (WTI) closed at $44.36 a barrel last week, down from $47.33… Read More
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The Markets (as of market close August 26, 2016)
As the “dog days” of summer drag on, trading continues to be relatively light. Oil prices fell at the beginning of last week amid rumors that Iraq may up its oil exports, prompting stocks to retreat. While stocks rallied midweek,… Read More
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The Markets (as of market close August 19, 2016)
By the close of last Monday, the Dow, S&P 500, and NASDAQ each had reached record highs for the second time in the past week, only to retreat by Tuesday’s close. The dollar lost value against the euro, yen, and pound on… Read More
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The Markets (as of market close August 5, 2016)
As the week progressed, oil prices gained some momentum, as did U.S. stock indexes, after starting out downward early in the week. Also, on the heels of a favorable jobs report, stocks rebounded by the end of last week to… Read More
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The Markets (as of market close July 29, 2016)
GDP growth rate for the second quarter, earnings reports from some key companies, as well as the large cap market indexes all cooled off last week. The tech-based NASDAQ and the small-cap Russell 2000 each posted weekly gains, with the… Read More
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The Markets (as of market close July 22, 2016)
The S&P 500 reached a record high last Friday while other major indexes posted marginal gains over the prior week. Equities have demonstrated a positive trend over the past several weeks. The NASDAQ eclipsed its previous high only to slip… Read More
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The Markets (as of market close July 15, 2016)
Stocks continued to move up for the third week in a row as each of the indexes listed here posted significant gains by last week’s end. The Dow gained almost 370 points, and is substantially ahead of its 2015 closing… Read More
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The Markets (as of market close July 8, 2016)
Equities continue to put the upheaval caused by Brexit in the rearview mirror as several of the indexes listed here are above their 2015 closing values. Of those indexes, only the Nasdaq and Global Dow remain below their end-of-year values…. Read More
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A Week Later: The Stock Market and Brexit
Due to Great Britain’s vote to exit the European Union (Brexit), June 24 was a tumultuous day for the financial markets. In the U.S. the S&P 500 Index fell by more than 3%. Other markets around the globe fell even… Read More
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Britain’s Surprising Decision
This week many investors waited in anticipation for the outcome of yesterday’s vote in the United Kingdom. The question to be answered was “Should the United Kingdom leave the European Union?” The consensus view was that those voting “Remain” would… Read More
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The New Normal?
The Federal Reserve’s decision to leave interest rates unchanged at last week’s meeting was not surprising. It is also becoming increasingly commonplace to see the Fed ratchet down its expectations for interest rates and economic growth. There appears to be… Read More
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The Dangers of Hindsight Bias
After an event has occurred, we have a tendency to see the event as having been predictable, even if we had little or no objective means for predicting it. This concept is referred to as hindsight bias or the knew-it-all-along… Read More
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Dividends: The Power of Compounding
The income provided by dividend-paying stocks can be a critical element of long-term returns. First, dividends always represent positive returns. As dividends rise, the related investment income increases. For retirees, a strong stream of dividend payments can reduce the need… Read More
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Be Careful About Averaging Down
The concept of averaging down, or adding more shares to an existing security position when the price falls, is well known to many investors. In fact, some of history’s best investors have added considerable wealth by adding to positions that… Read More
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Shifting Winds in Retail Sales
Earnings for big-box department stores continue to decline. Since peaking at a cyclical high on April 8, 2015, large department store stocks in the S&P 500 such as Nordstrom (JWN), Macy’s (M) and Kohl’s (KSS) have each fallen more than… Read More
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Pay Attention to What Might Happen, but Be Careful About Reacting to It
In the United Kingdom, June 23 looms as being a potentially significant day. On that date, a referendum will be held to determine whether or not Britain will leave the European Union (collectively, Brexit). Should investors try to position their… Read More
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Investing and Baseball
There are numerous parallels between sports and investing. Last fall we discussed some of the similarities between football and investing. With baseball season underway, let’s take a look at some of the ways in which investing and baseball are alike…. Read More
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Reveal Your Inner Skeptic
Behavioral finance tries to address those psychological traps that are confronted while making decisions under uncertainty, such as those investors make when deciding to buy or sell securities. In the past we have talked about behavioral biases such as myopic… Read More
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On Contrarianism, Black Swans and Following the Crowd
Last Tuesday, the S&P 500 Index closed above 2100 for the first time since December; it is also currently trading within about 2% of last May’s all-time record close of 2130.82. In fact, the S&P 500 Total Return Index, which… Read More
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The Too Hard Pile
Any person who thinks investing is easy or that he is going to be able to get every stock pick or market-related forecast correct is simply fooling himself. We cannot assure investment success by buying shares of the company that… Read More
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Putting Your Retirement Needs First
The rules related to how financial professionals manage the trillions of dollars they invest on behalf of Americans saving for retirement are about to get stronger. The impetus for the pending change comes from the Securities and Exchange Commission’s Study… Read More
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Concern About Special Charges Is Growing
When companies report earnings, they typically provide investors with a series of numbers. The most basic earnings measure is accounting profit divided by shares outstanding, which is more commonly referred to as GAAP earnings or earnings under Generally Accepted Accounting… Read More
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What Happened to Capital Spending?
Although the U.S. economy has been in expansion mode for much of the last seven plus years, U.S. businesses are spending less on buildings, equipment and software than they have historically. The data tells us that companies are reducing their… Read More
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After a Lot of Angst, We Are Back to Where We Started
In 2016, the market got off to one of its worst starts in history. At its February 11th close, the S&P 500 was down about 11% from where it ended 2015; it was also more than 14% below its May… Read More
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A Bull Market Retrospective
On Monday, March 9, 2009, the S&P 500 Index closed at 676.53, representing that index’s lowest close in more than a decade. On the previous Friday, the index touched its low (666.79) in a bear market that seemed like it… Read More
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Share Buybacks: Time to Pay the Piper?
Over the past few years, many U.S. companies have borrowed heavily. However, many companies have used these funds to repurchase their shares instead of investing them to spur future growth. According to FactSet, the dollar value of share repurchases amounted… Read More
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The Millennial Generation: Experiences Versus Things
Based on our observations, what consumers want to spend their money on is changing. A conversation with most of our children typically shows that they are much more interested in experiences than in things. For many, the primary item they… Read More
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Would a Time Machine Make Investing Easier?
If you remember the movie Back to the Future II you will recall that Biff goes to the future and steals a Sports Almanac. He then returns to the past and gives it to a younger version of himself. Young Biff used… Read More
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What’s up (or Down) With Oil?
In our recent discussions related to the stock market’s somewhat tumultuous start to the year (see here, here and here) as well as our thoughts about what might happen in 2016, we have highlighted oil as one of the key… Read More
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A Look at the U.S. Economy
January was certainly a turbulent month for investors. The S&P 500 Index declined 5.1%, its worst month since August. Daily stock-trading volumes were above normal levels, as the most shares changed hands since August 2011. Of course, two weeks ago,… Read More
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Time to Take a Deep Breath?
After declining on seven of 2016’s first 12 trading days, the S&P 500 Index closed Wednesday down a little more than 9% year-to-date and almost 13% from its all-time high last May. (It was down nearly 15% from its record… Read More
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Market Bears Are out in Full Force
This is easily the worst start to a year for the stock market in history. While we said we expected the market would be more volatile this year, we certainly did not anticipate a start like this. Whether the market… Read More
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What Is the Market Telling Us?
The first week of the New Year was a rough one for investors. The S&P 500 Index closed lower on each of the year’s first five days. While the S&P 500 is still nearly 3% above its closing low of… Read More
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A Look at the Year That Was, and Thoughts About the Year Ahead
For much of the year’s first half, 2015 looked a lot like 2014, as returns were somewhat in line with long-term averages. However, as the year progressed, the S&P 500’s performance became more uneven. On August 24, the market tumbled,… Read More
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When Should Performance Be Assessed?
We hope that all of you who are reading this commentary are enjoying the holiday season and getting an opportunity to spend time with friends and family. Happy Holidays to all! As we approach year end, we are reminded that… Read More
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A Look at Director Pay, Not the Fed’s Interest-Rate Hike
As expected, last Wednesday the Federal Reserve finally raised interest rates and moved away from its seven years of zero-interest-rate policy. If you came here expecting to find our thoughts on topics such as what the rate increase means or… Read More
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Prepare for an Onslaught of News About the Fed and Interest Rates
At the risk of dulling your senses with yet another discussion of the Fed and interest rates, we thought it would be worthwhile to share a few thoughts about interest rates and the markets. Admittedly, we know that having great… Read More
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Should You Buy Stock if You Like/Love the Product?
When you find a product or service you like, love or know a lot about, should you consider investing in the company that makes the product? The short answer is that it could be a good starting point. After all,… Read More