Weekly Market Commentary – September 28, 2015 The Markets Oh, the uncertainty! Investors are keeping one eye on the Federal Reserve and the other on politicians trying to determine what may happen during the last quarter of the year. The Fed, which is the central bank of the United States, is responsible for conducting monetary policy with an eye toward full employment and stable prices. If, as St. Louis Fed President James Bullard told Reuters, the economy is near full employment and inflation is sure to rise, then why didn’t the Fed raise rates in September? Reuters reported voting members
Weekly Market Commentary – September 21, 2015 The Markets As Tom Petty often sang, “The waiting is the hardest part.” Whether it’s waiting for college acceptance letters, medical test results, employment offers, or Federal Reserve monetary policy changes, waiting can produce a lot of anxiety. A 2012 research paper written by Associate Professor Kate Sweeney and Graduate Fellow Sara Andrews of the University of California, Riverside, explained it like this: “…Although waiting for inevitable events such as the arrival of a bus or one’s turn in line may be irritating…the combination of uncertainty about the outcome and waiting for that
The Markets The market is as streaky as a slice of bacon. U.S. stock markets have been sliding higher. They’ve been sliding lower. Barron’s reported the Standard & Poor’s 500 Index has tumbled from gains to losses and back again for 10 weeks in a row. The Dow Jones Industrial Index has tagged along with nine weeks of flip-flops. You’d almost think they were running for office. There are market optimists. There are market pessimists. The American Association of Individual Investors (AAII) weekly survey of investor sentiment reported 34.6 percent of respondents were bullish. That’s up from the previous week.
The Markets Who’s the culprit? Speculating on who or what is to blame for recent market weakness is a popular pastime right now. Last week, Barron’s said the search for someone to blame is a lot like a game of Clue. So far, the most common conclusions are “the People’s Bank of China with a devalued currency in Beijing,” and “Janet Yellen with a potential interest-rate hike in Washington.” The article pointed out those theories might be flawed. After all, China’s slowdown wasn’t a surprise. Analysts have been factoring slower growth into their calculations for some time. U.S. rate hikes