Category Archives: Current Events

Market Recap

Posted on October 19, 2018 by Gemmer Asset

  Putting the Selloff in Context   The equity markets tried to bounce this week but it all fizzled out by Friday. For the week the S&P was flat while small-cap equities had a fractional loss. The developed overseas markets held up reasonably well, but emerging took another hit. The index was off -1.5% and China slid over -2% for the week.   To put things in perspective, since the equity market high on 9/20/18,…
Continue reading >>

Categories:

Bookmark and Share

Investing Principles

Posted on October 13, 2018 by Gemmer Asset

Every once in a while it’s good to re-examine why you do the things you do.  Over the past few days the markets hit a bit of a rough patch.  Nothing catastrophic, just a bit more volatility than we’ve grown accustom to.  Times like these are perfect for revisiting basic investing principles, taking a step back and looking at the big picture.  With that being said, we thought this blogpost would be a good opportunity…
Continue reading >>

Categories:

Bookmark and Share

Market Recap

Posted on October 5, 2018 by Gemmer Asset

  Rising Rates Causing Indigestion   The story of the week was the bond market. U.S. Treasury bonds sold off sharply as interest rates increased across the curve. For the week the yield on the 10-year Treasury increased from 3.06% to 3.22%, a +16bps increase. Two-year yields were up +6bps. As a result, intermediate-term Treasury bonds lost -1.2% for the week while long-term bonds were down -3.4%.   For most of the year rising rates…
Continue reading >>

Categories:

Bookmark and Share

A Dubious Milestone

Posted on September 26, 2018 by Gemmer Asset

Last week we wrote a piece on what has changed since Lehman’s failure. A key point we tried to make (read more here) was both banks and consumers had paid down debt (deleveraged) while the U.S. government had taken up the slack. Debt to GDP in the United States is on track to surpass the level last seen during the New Deal/World War II years, as you can see below.     On this point,…
Continue reading >>

Categories:

Bookmark and Share

Market Recap

Posted on September 21, 2018 by Gemmer Asset

  New Highs Despite Rising Trade Tensions   It was a mixed week for the U.S. equity indexes, but the S&P and Dow did manage to hit new highs. For the week the S&P added +0.9% but small-caps and the NASDAQ lost -0.6% and -0.3% respectively. The overseas markets performed much better for a change. Japan gained +3.4% while the EAFE was up +2.8% and the emerging world +3.0%. A softer dollar for the first…
Continue reading >>

Categories:

Bookmark and Share

Global Equity Performance – What’s Driving the Divergence?

Posted on September 20, 2018 by Gemmer Asset

It’s no secret the U.S. equity market has dominated in terms of performance this year.     What’s interesting is how we got here. As you can see above, both US and international markets were essentially flat at the end of April after a bit of a roller coaster in the 1st quarter. Then the divergence began. Here’s how the performance breaks down:     Over the last 4+ months, the US has gone from…
Continue reading >>

Categories:

Bookmark and Share

What Has Changed Since Lehman and What Lessons Have Been Learned?

Posted on September 19, 2018 by Gemmer Asset

Last week saw the 10-year anniversary of Lehman’s failure. In a way Lehman going under marked the point where the recession of 2008 turned into the Global Financial Crisis (GFC). For a moment everything stopped – would the system survive? Reputable figures were pulling hard cash out of the bank on Friday just in case it didn’t open on Monday. This was depression era type of stuff.   What Has Changed?   But it almost…
Continue reading >>

Categories:

Bookmark and Share

Market Recap

Posted on September 14, 2018 by Gemmer Asset

  Is Growth and Inflation Softening at the Margin?   The equity markets were generally higher this week while bonds lost ground. For the week the S&P added +1.2% and small-caps gained +0.5%. The overseas markets also performed well with the EAFE up +2.0% and emerging +1.0%.   In general, the economic reports have been decent with growth a touch on the soft side and inflation moderating, at least for a month. Big picture wise,…
Continue reading >>

Categories:

Bookmark and Share

Core Inflation Takes A Breather

Posted on September 13, 2018 by Gemmer Asset

This morning the Bureau of Labor Statistics (BLS) released CPI inflation data. It showed that Core Inflation (ex-food and energy) grew +2.2% year-over-year. This is down from the +2.4% economists expected and is the first time since 2017 that a Core CPI data point was lower than the previous month.     At risk of getting too deep into the weeds, I’ll only mention that today’s number appears to be the result of one particular…
Continue reading >>

Categories:

Bookmark and Share

Today’s Jobs Report – Wage Growth Picks Up

Posted on September 7, 2018 by Gemmer Asset

Today’s jobs report was a solid one with nonfarm payrolls rising by 201k, higher than both the 190k surveyed by economists and the 157K of the previous month. The unemployment rate stayed put at 3.8%, but average hourly earnings (a measure of wage growth) came in at 2.9% growth year-over-year, a new cycle high as you can see below.     This report, and the positive headlines associated with it were overshadowed by the Trump…
Continue reading >>

Categories:

Bookmark and Share
« First ‹ Previous 1 2 3 4 5 6 7 8 Next › Last »