Economic & Market Update

EXECUTIVE SUMMARY Two forces are significantly impacting global markets. The lack of Security and the element of Surprise are increasing volatility as evidenced by the significant price swings of the last couple months. A global slowdown is in process as evidenced in the most recent measurements of the Global Purchasing Managers Index. With growth cooling…

EXECUTIVE SUMMARY Interest rates continue to be a focus of attention, particularly with the current divergence between market expectations and those of the Federal Open Market Committee (FOMC). A new word has been added to the lexicon with “Grexit” becoming the title of the Greek crisis. A final agreement appears to be coming to the…

EXECUTIVE SUMMARY • Domestic markets are being pressured by lower consumption readings despite low energy prices putting more money in consumer pockets. , • Despite much hype over the aging of the American population, the U.S. demographic makeup is very encouraging when compared to many of the other developed and developing countries in the world.…

  EXECUTIVE SUMMARY • Recent manufacturing data from the Institute of Supply Management (ISM®) indicates the economy is growing. • The Federal Reserve brought an end to Quantitative Easing, while also indicating interest rates will remain low until economic data convinces them to do otherwise. (i) • Current data show that housing starts are on…

The Second Quarter came to an end with the Dow Jones Industrial Average at 16,826.6. In the first few days of July the DJIA briefly entered 17,000+ territory for the first time in history. Not to be overshadowed by the stock market, the Unites States energy industry was officially named the world’s largest producer of oil and natural gas liquids by the International Energy Agency, and the U.S. economy added 288,000 jobs in the Second Quarter.[i][ii]

Executive Summary   Unlike 2013, the Commodities and Real Estate sectors have been the best performers in the first quarter of 2014. Recent Market volatility has heightened public sensitivity to the potential of a decline in stock market values. Long term market trends seem to suggest long term flat markets lead to sustained bull market…

The U.S. economy finished off 2013 mixed. With upward revisions to 3rd quarter Gross Domestic Product (GDP) from 2.8% to 4.1% it was a strong start to the last half of the year. Early estimates of 2% growth for the 4th Quarter, however, suggest the expansion may have been slowing in the 4th quarter. The degree to which the government shutdown and inclement weather affected the economy will become clearer when official measurements of 4th Quarter GDP are released on January 30th.

The fourth quarter of 2012 provided investors a glimpse of how quickly the financial markets can react to any news, be it good or bad.

While several facets of the domestic economy appear to be strengthening, most notably housing, we are committed to our current conservative approach. Our concerns surrounding the global economy run the gamut – potentially overvalued stock market, lack of real economic recovery, and economic uncertainties within the European Economic Union and Middle East – domestic issues, however, are the real concern.