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…
Economic and Investment News Bits The S&P 500 has had 24 record high closes YTD 2017 through Wednesday, June 14, 2017. Less than halfway through the year, it has already surpassed the total number of record closes from 2016. (Source: S&P Dow Jones Indices) One in five Americans never have a serious discussion about finances…
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…
Economic and Investment News Bits One million more people will travel this Memorial Day weekend than last year (an increase of 2.7%). (Source: AAA) Unemployment decreased slightly to 4.4%, tying the lowest level from the last economic expansion. In the last 40 years, the only time unemployment has been lower was during the longest economic…
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…
Economic and Investment News Bits Americans will spend more than six billion hours preparing their taxes this year along with $10 billion to tax preparation firms and $2 billion on tax preparation software. In many developed democracies, the government provides “pre-filled returns” (while also having an appeals process), avoiding much of the time, money, and…
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…
At PDS, we simplify things. Our objective is to make complex financial topics more approachable for our clients. No doubt the presidential election last fall made things seem more complex. Over the past few weeks, I have offered the first two rules of investing in a Trump World. The first rule told you to be…
Economic and Investment News Bits As markets correctly anticipated, the Federal Reserve raised interest rates by 25bps. This is largely seen as a vote of confidence in the US economy, which has experienced increasing inflation and job growth. Following suit, most banks increased their prime lending rates…and may eventually increase their deposit rates. Keep these…
March 2017 Financial Markets Summary Last month we noted the average 2017 year-end target for the S&P 500, as predicted by 16 major investment banks, is 2353. Expectations were, on average, very tame. As we write this letter today, the index is at 2400…so much for expert predictions. And who thought we would have double-digit…
Recently, I offered my thoughts on the first rule of Investing in a Trump World. President Trump represents different things to different people, but one thing he poses for everyone is a bit of uncertainty. No president has ever been followed (or judged) on social media like President Trump has been, or will continue to…
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…
When I look at social media these days, I cannot tell if the world is coming to an end, or if we are about to embark on our nation’s greatest moment. For the first time in our history, a presidential transition was followed step-by-step on social media, and the reaction is frightening. Consider that only…
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…
