Weekly Market Commentary – October 26, 2015 The Markets Central banks were at it again – and markets loved it. Last week, European Central Bank (ECB) President Mario Draghi surprised markets when he indicated the ECB’s governing council was considering cutting interest rates and engaging in another round of quantitative easing. The Economist explained European monetary policy was heavily tilted toward growth before the announcement: “The ECB is already delivering a hefty stimulus to the Euro area, following decisions taken between June 2014 and early 2015. It has introduced a negative interest rate, of minus 0.2%, which is charged on
Weekly Market Commentary – October 19, 2015 The Markets How quickly emotions have changed since August. Worry? Angst? It’s already priced into the markets, according to some experts. Last week, Barron’s published the results of its Big Money Poll, a biannual survey of professional investors and money managers. A majority of those surveyed (55 percent) were bullish about U.S. markets’ prospects through June 2016, 29 percent were neutral, and 16 percent were bearish. That’s a big shift. Last spring, just 45 percent of those polled were bullish and nearly one-half were neutral. This time around, things are different: “After a
Kraft Heinz Layoffs in Champaign If you are leaving Kraft Heinz, you may or may not have planned for it. Either way you have some decisions to make. You can leave your money in the Kraft 401k plan or you can roll it over into an IRA. You should check with your HR department to see of your 401k plan offers an annuity option. If your 401k plan does have an annuity option, you may begin annuity payments based on your life expectancy that can have a survivors benefit for your spouse. Check with you human resources department to see
Weekly Market Commentary – October 12, 2015 The Markets They’re investors. They’re allowed to change their minds. Just a few weeks ago, on September 17, the Federal Reserve Open Market Committee (FOMC) decided to leave the fed funds rate unchanged. In part, this was because, “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further ownward pressure on inflation in the near term.” The next day, September 18, stock markets tumbled. By the time September was over, many markets had closed on their worst quarter in four years, according to the BBC. The
Weekly Market Commentary – October 5, 2015 The Markets Well, third quarter was a humdinger. It began with the first International Monetary Fund (IMF) default by a developed country (Greece) and finished with Hurricane Joaquin possibly headed toward the east coast. In between, China’s stock market tumbled, the Federal Reserve tried to interpret conflicting signals, and trade growth slowed globally. After such a stressful quarter, we may see an uptick in the quantity of alcoholic beverages consumed per person around the world. That number had declined (along with economic growth in China) between 2012 and 2014, according to The Economist.