Last year, investors were truly surprised by the disparity of returns in stocks and bonds. Against a backdrop of slowly recovering economic data and decent corporate earnings, the S+P 500 rose by more than 28% marking its best year in more than a decade. In contrast, bonds, a traditionally safe investment haven marked their worst… Continue reading The Market Conundrum – The Year to Date Divergence of Stocks and Bonds
Tag: corporate earnings
Reviewing the Lower for Longer Theme
Well, for the east coast, it was a wonderful spring weekend. I think I heard a few months back that the eastern U.S. could experience lower temperatures and more rainfall as a result of global warming, one possible outcome anyway. That’s not what I want to discuss but possibly the weather is as difficult to… Continue reading Reviewing the Lower for Longer Theme
Will the Goldilocks Environment Continue?
We all remember the children’s story of Goldilocks, the fair haired young girl who came upon the food waiting for the three bears. Her preference was for the porridge that was neither too hot nor too cold. During his tenure at the fed, Alan Greenspan coined the phrase “Goldilocks Economy”, an environment in which economic… Continue reading Will the Goldilocks Environment Continue?
The Color of Money
Economists have a full palette of colors to paint any economic picture they desire. The markets seem to be happy right now, with less red going into the picture. Our basic economic palette consists of housing, employment and corporate earnings which all have moderated, but they do not show signs of deteriorating further and remain… Continue reading The Color of Money