July 2017 Financial Markets Summary At the halfway point in the year, with the exception of commodities, most asset classes have performed quite well. International stocks have led the way with emerging markets (China, India, Brazil, etc.) increasing by almost 19% and developed markets (Europe, Canada, Japan, etc.) by almost 14%. Domestic stocks are not…
June 2017 Financial Markets Summary PDS Planning has always been a strong advocate of global diversification. Some investors and economists began to question this philosophy when U.S. stocks outperformed virtually everything from 2013-2016. Some even argued that you get global diversification with U.S. stocks, since their revenues are generated all over the world. Coca-Cola, for…
May 2017 Financial Markets Summary More uncertainty, more growth, more record highs and more risk: the reigning market theme today seemingly is one of quantity – more of virtually everything, as recently suggested by Goldman Sachs. “Investors in recent months have faced a blitz of new U.S. policy initiatives whose contours are largely unknown but…
Here is the link to the first quarter PDS Investment Webcast in case you missed it today! This quarterly call was a discussion on the impact of rising interest rates and how we are currently positioning bond allocations for clients. We also recapped the post-election bounce and current market valuations around the world. Finally, we closed with…
April 2017 Financial Markets Summary “Interest rates are rising! It’s time to abandon your bonds!” This has been the popular commentary from many media outlets over the past few months. Yes, Janet Yellen and the Federal Reserve increased the Fed Funds rate by a whopping 0.25% on December 14, 2016 and by another 0.25% on…
Economic and Investment News Bits The surest way to reach financial goals is to contribute adequately on a regular basis. This is more important than asset allocation, security selection, and even risk management. Increasing contributions trumps all other aspects of investing. The goal should be to max out payroll deductions for retirement plans. (Source: Hal…
February 2017 Financial Markets Summary “What are the markets going to do in 2017?” That is the most frequent question we have been getting from our clients over the last few weeks. And clients know our stock answers are we don’t know, we have no accurate crystal ball, and virtually all “experts” get these things…
This quarterly call provided a review of 2016 and the massive increase in populist movements around the world. We focused the discussion on the potential impact of the change in Washington which included taxes, inflation, interest rates, stocks and bonds. We closed with the 2017 market outlook. Please click the link below to see the…
Economic and Investment News Bits “The primary driver of performance for almost any asset class in 2017 will be whether the U.S. dollar rises or falls. If the dollar falls back, U.S. equities underperform, and emerging market bonds outperforms big time. If the dollar gains because of protectionism, investors should start worrying about a global…
January 2017 Financial Markets Summary As we noted in December’s Summary, 2016 was a year of surprises. The biggest surprise for many Americans was Donald Trump’s election win. But just what does that election really mean in terms of potential changes? Federated Investors notes “the GOP sweep promises a lot of changes: repatriation and lower…
Economic and Investment News Bits After a seven-year weak expansion, there is a major policy shift that will take pressure off the Fed and put pro-growth fiscal policy and regulatory reform in the driver’s seat. “It will take months and perhaps years for the full policy implications of the “Trump turn” to be implemented. The…
December 2016 Financial Markets Summary 2016 has been the year of surprises. Most conventional wisdom and expectations have been proven wrong. It was common knowledge that the Britain vote to leave the European Union would fail. Common knowledge was wrong. All major investment firms suggested loading up on European stocks and reducing domestic exposure. They…
Economic and Investment News Bits A sign of things to come? Long-term U.S. government bonds, which have held their value as well as any asset class over the last three years, took a hit last week. Vanguard’s Long-Term Treasury fund lost almost 7%. The overriding factor is the incoming president’s agenda that includes significant increases…
November 2016 Financial Markets Summary The PDS investment team recently met with colleagues and a knowledgeable investment company specialist. Most of the discussion evolved around economics: inflation, interest rates, GDP, and global currencies. The specialist’s viewpoints: Inflation is soon going to be easily above 2% and likely moving closer to 3%, The 10-year Treasury (currently…
This quarterly call provided an update on asset class returns so far for the year and the past few years. We focused the discussion on the potential market reactions to the election, the impact of increasing interest rates and the crucial role that dividends could play in this environment. Please click the link below to see…
