Featured Journal Entry

IS ALL THE GOOD NEWS PRICED IN?

Last week we discussed whether stock prices might be reflecting peak optimism. In that commentary we noted that while sentiment may be overly optimistic and a pickup in volatility would be totally normal, strong breadth measures suggest stocks still may have more upside. This week we tackle that same topic of peak optimism, but by...
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Journal Entries

The Bright Side
—“It is always darkest just before the day dawneth.”— Thomas Fuller | English theologian and historian The quote above is better known today as “It is always the darkest just before dawn.” Well, October was one of the worst months we’ve...
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Focusing on Fundamentals
Financial markets have had the roughest October in years as investors have grown wary over future corporate profits and the Federal Reserve’s (Fed) monetary policy plans. Even as markets fluctuate, we encourage investors to focus on the...
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Another Tough Week
It was another tough week for stocks. The S&P 500 Index was down just shy of 4% last week, briefly dipping intraday into correction territory (more than 10% off the all-time high) and putting October on track to be the weakest month for stocks...
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Third-Quarter GDP Preview
Investors’ first look at third-quarter gross domestic product (GDP) will be released on Friday, October 26. Based on the economic data and projections we’ve seen, the economy grew at a moderate to strong pace in the third quarter, with the...
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Earnings Update: So Far So Good
Earnings season off to a good start. Third quarter earnings season is rolling and, so far, results have been quite good overall, supported by strong U.S. economic growth, robust U.S. manufacturing activity, tax cuts, and big increases in energy and...
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Benign Inflation Readings Support Fed's Gradual Approach
Several new readings on inflation last week confirmed that price pressures remain manageable, supporting a continued gradual path of rate hikes for the Federal Reserve (Fed). With the unemployment rate near multi-decade lows and the economy growing...
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