- Equities flat following yesterday’s sharp drop. Stocks are treading water this morning after a stronger dollar, rising Treasury yields, and a weak start to earnings season led to a 1.2% drop for the S&P 500 yesterday. Healthcare was the worst performer, losing 2.5%, while telecom was the most resilient sector, slipping only 0.2%. Overnight, Asian markets were lower across the board, led down by the Nikkei (-1.1%); European equities are slightly lower following a flurry of production data, and the FTSE 100 is losing 0.3% as the pound (+1.1%) is staging a relief rally. Finally, the yield on the 10-year Treasury is continuing to move up (1.78%) and both WTI crude oil ($50/barrel) has slipped 1.5% and COMEX gold ($1,257/oz.) is near flat after losing ground on Tuesday.
- Over the last month, the LPL Financial Current Conditions Index (CCI) rose four points to 216. The CCI has now rebounded well off of its January lows and remains in the range it has held for most of the current expansion. Retail sales and initial jobless claims made the largest positive contribution to CCI growth in September, while credit spreads and shipping traffic were the largest detractors. View the CCI.
- JOLTS (Aug)
- FOMC Minutes
- George (Hawk)
- China: Imports and Exports (Sep)
- Singapore: GDP (Q3)
- China: CPI (Sep)
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Past performance is no guarantee of future results.
The economic forecasts set forth in the presentation may not develop as predicted.
The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
Stock investing involves risk including loss of principal.
Investing in foreign and emerging markets securities involves special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.
Treasury Inflation-Protected Securities (TIPS) are subject to interest rate risk and opportunity risk. If interest rates rise, the value of your bond on the secondary market will likely fall. In periods of no or low inflation, other investments, including other Treasury bonds, may perform better.
Bank loans are loans issued by below investment-grade companies for short-term funding purposes with higher yield than short-term debt and involve risk.
Because of its narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.
Commodity-linked investments may be more volatile and less liquid than the underlying instruments or measures, and their value may be affected by the performance of the overall commodities baskets as well as weather, disease, and regulatory developments.
Government bonds and Treasury bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.
Investing in foreign and emerging markets debt securities involves special additional risks. These risks include, but are not limited to, currency risk, geopolitical and regulatory risk, and risk associated with varying settlement standards.
High-yield/junk bonds are not investment-grade securities, involve substantial risks, and generally should be part of the diversified portfolio of sophisticated investors.
Municipal bonds are subject to availability, price, and to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rate rise. Interest income may be subject to the alternative minimum tax. Federally tax-free but other state and local taxes may apply.
Investing in real estate/REITs involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investment objectives of this program will be attained.
Currency risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.
Technical Analysis is a methodology for evaluating securities based on statistics generated by market activity, such as past prices, volume and momentum, and is not intended to be used as the sole mechanism for trading decisions. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns and trends. Technical analysis carries inherent risk, chief amongst which is that past performance is not indicative of future results. Technical Analysis should be used in conjunction with Fundamental Analysis within the decision making process and shall include but not be limited to the following considerations: investment thesis, suitability, expected time horizon, and operational factors, such as trading costs are examples.
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