The last 18 months have been tough for bond investors as interest rates have remained low on short-term bonds, and they have gyrated up and down on intermediate and long-term bonds. The crosscurrents of the Federal Reserve wrapping up their bond buying program in 2014 and the expectation of short-term interest rates moving higher in…
August turned in the weakest monthly performance for the stock market since 2012, with the S&P 500 declining by 6.03%, and the Dow Industrials declining by 6.57%(1). Interestingly, there seemed to be no major news event that can easily be identified as the reason for the drop. Many have looked to China and weakening global…
This year has been marked by volatile interest rates thus far making it challenging for income investors and managers alike. The dramatic slump in oil prices since last June has weighed heavily on the energy sector, sending energy stock prices to new lows. As can be seen from Chart 1, the West Texas Intermediate (WTI,…
The banking sector is one of the oldest and most important sectors in the makeup of the U.S. economy. Because of this, Weatherstone follows the sector closely to determine whether it should be included in portfolios, and what, if any affect it may have on the broader economy and investment backdrop. Banks serve two primary…
Quantitative Easing (QE), the U.S. Federal Reserve’s (Fed) emergency economic stimulus bond-buying program since 2009, came to an end in October 2014. Results of the quantitative easing were an improved labor market, economic growth picked up and the stock market rallied. Despite the end of QE, the Fed has maintained a loose monetary policy with…
The first quarter of 2015 is now in the books. It was a choppy quarter with little return for the stock and corporate bond markets. The stock market as measured by the S&P 500 gained less than 1% for the quarter, while experiencing four declines of 3% or more since late December. January and March…
A much anticipated Federal Reserve “Fed” meeting will be taking place over the course of Tuesday and Wednesday this week. The anticipation can be summed up in one word, “patient” which refers to whether the Fed will maintain its patience on increasing short term rates or whether it will set the stage for a rate…
As the European Central Bank (ECB) has moved to reduce the potential for deflation in Europe, there has been a significant impact on the global interest rate landscape. This move by the ECB is likely to impact our domestic bond market for the foreseeable future. In the chart below, you can see that for more…
Domestic stocks managed to post a positive year, although the advance was not as broad-based as prior years with mid-cap and small-cap stocks producing only about half of the gain of large stocks. Foreign stocks were negative for the year due to weaker performance from international markets, and the impact of a stronger dollar. For…
The price of oil is falling like a rock. Since June, oil prices have fallen more than 40% and last week the price of West Texas Intermediate (WTI) (the most popular benchmark for American oil) closed below $60 a barrel(1). After Saudi Arabia declined to lower their oil supply at the November Organization of Petroleum…