Yearly Archives

2015

Update on Hedged Equity Strategies

Thursday, December 17, 2015

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The week ending December 11, 2015 witnessed the return of volatility on Wall Street with the S&P 500 ending its worst week since August with concern about declining commodity prices and the first U.S. interest rate hike in nearly a decade. In our last post, we reviewed thoughts on making money in a sideways moving market.  Specifically, we recommended seeking active management strategies in the portfolio. Two hedged equity strategies that our investment committee is using are ABS Investment Management and the Glenmede Secured Options fund.  Both managers are examples of active strategies that can add return while taking less…

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Making Money in a Sideways Market

Tuesday, December 1, 2015

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Consensus forecasts, including our own, are for financial markets to offer below historical level market returns over the mid-term (next 5-7 years).  This year has been an example of this theme with the S&P 500 up 3.4% and the Barclays Aggregate bond index up 0.68% through November 20th. With this in mind, three thoughts on making money in a “sideways market”: 1. Collect your dividends and interest – Dividends and interest are an essential part of returns for investors.  Currently, the S&P 500 dividend yield is 2%, the MSCI EAFE is 3% and the 10 year U.S. Treasury bond index is…

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Monthly Market Update for October 2015

Thursday, November 19, 2015

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Please find the next blog in our monthly series that provides timely market data as well as perspectives on the current state of the economy and the global financial markets. Global Economy: U.S. economic activity gained momentum driven by strong consumer and business demand even as weak global sales held back exports and manufacturing.  The economy expanded at a 1.5% annualized rate during the third quarter.  A resilient consumer was masked by a major reduction in corporate inventories.  Consumer spending grew an estimated 3.2% as consumers benefited from cheaper gas prices and income gains.  However, companies reduced inventories by an…

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Monthly Market Update for September 2015

Thursday, October 15, 2015

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Please find the next blog in our monthly series that provides timely market data as well as perspectives on the current state of the economy and the global financial markets. Global Economy: The pace of growth in the US economy cooled in September as the rising US dollar constrained business activity and lowered the cost competitiveness of US exporters.  The US economy added fewer jobs than projected in September, while wage growth was stagnate and the unemployment rate was unchanged.  Job growth was 142,000 versus forecasted growth of 200,000.  This followed a downward revision for August to 136,000 from the…

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Monthly Market Update for August 2015

Wednesday, September 16, 2015

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Please find the next blog in our monthly series that provides timely market data as well as perspectives on the current state of the economy and the global financial markets. Global Economy: Second quarter growth was stronger than first reported on larger gains in consumer and business spending and a buildup of inventories.  Inventory accumulation is typically a sign that companies have confidence in their outlooks for business activity.  Gross domestic product rose at a 3.7% annualized rate, up from the 2.3% estimate that the Commerce Department reported last month.  The biggest driver of the upward revision was larger gains…

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