Monthly Archives: November 2013

Market Commentary 11/22/13

With the holiday season upon us investors await guidance from the Federal Reserve as officials have suggested that continued improvements in economic data could lead to them scaling back the amount of their asset purchases.  Estimates for a healthier economy show GDP growth for the US is expected to improve in 2014 to 2.5 and 3 percent and fare even better in 2015.  The reduction in asset purchases could occur within the next few Fed meetings including as soon as the December 17th and 18th scheduled meetings.  However this decision could be postponed as the January 15th deadline for temporary funding for government spending will be looming. Continue reading

Has the “Great Rotation” into Equities Started? 11/15/13

It’s one of those catchy terms coined by a major Wall Street firm: the “Great Rotation,” which describes the possibility of a major asset allocation shift by investors from bonds into stocks. Specifically, it is the concept of the reversal of the dramatic shift out of equities into cash and bonds during the 2008financial crisis.  In 2008, investors pulled approximately $80 billion dollars out of equity funds as fears of the next great depression grew.   Continue reading

U.S. Payrolls Improved in October 11/8/13

U.S employers added more jobs than expected in October, suggesting that the U.S economy may have weathered the impact of the 16 day government shutdown better than originally estimated.

American employers added 204,000 jobs in October, exceeding the average forecast of 120,000 by Bloomberg economists.  The September jobs report was also revised higher to a 163,000 gain.  Continue reading

Fed Continues Stance 11/1/13

This week the Fed announced that they will continue to maintain their current pace of quantitative easing at this time.  Economic data points to some slowing in growth including an employment report showing 130,000 private sector jobs were created in October which was below the estimated 150,000.  While indications were that the economy is still improving overall, officials would like to see more evidence that growth can be sustainable before pulling back.    Continue reading