Economic Updates

Economic Update: A Full Quarter of COVID-19

Markets rallied during the second quarter of 2020. The unprecedented federal stimulus measures more than offset an otherwise brutal global economy. But it’s impossible to predict what the markets will do in the next few months.

Economic Update: An Eventful Quarter

We all witnessed the economic volatility during the panic phase of the COVID-19 pandemic. Future market direction will depend on news of virus containment and the governmental response. For investors with a long enough time horizon, the best action in this kind of situation has always been to stay the course.

Last Year Ends on an Economic High Note

Given the strong year for markets overall, you may not remember that 2019 started with tremendous uncertainty. Also, for the first time in over 170 years, the United States closed an entire decade without experiencing a single recession.

Economic Update: A Review of Third Quarter 2019

The third quarter of 2019 was mixed for markets throughout the world. U.S. large-cap equities, as represented by the S&P 500 Index, gained 1.70% for the quarter and are now up 20.55% year-to-date.

Economic Update July 2019

The U.S. economy has shown growth for 121 consecutive months since June 2009. Unfortunately, our GDP growth may be slowing down. Goldman Sachs predicts that the European Central Bank will lower its deposit rate by 20 basis points and restart quantitative easing in September.

Economic Update: A Review of First Quarter 2019

The stock market rebounded sharply in the first quarter, roughly making up for losses during the fourth quarter of 2018. Economic news didn’t change substantially over the last three months, but market sentiment clearly did.

Economic Update A Review of Third Quarter 2018

Markets rewarded the strong U.S. economic performance with equally strong U.S. equity performance during the third quarter. Those returns, however, were not matched throughout the rest of the world. Concerns about escalating tariffs seem to have taken a toll on international market sentiment.

For the year as a whole, the U.S. market experienced strong returns. This was despite a particularly destructive hurricane season which, according to Moody's, resulted in combined U.S. property damage of over $200 billion. Another one of the most remarkable things about 2017 was the complete lack of market volatility. But perhaps one of the biggest surprises was the stability of Eurozone politics after years of disarray.

Market gains so far this year might have made some valuations a little stretched, but it is not too difficult to see a path to continued gains. In the U.S., for instance, tax reform could have a substantial effect on corporate profitability if it is enacted. And if the current growth trends continue overseas, that would likely result in further international stock market gains as well.