DAILY INSIGHTS
Stocks flat. US stocks opened slightly lower in the midst of higher COVID-19 numbers dominating the conversation. China’s market was closed Friday, but other Asian markets were green. European markets were also comfortably higher in midday trading, as the European Union offered to limit the scope of the digital tax it had threatened with the United States. Continue reading
Economic Blog
The economy is moving in the right direction, as many economic data points are coming in substantially better than what the economists expected. From May job gains coming in more than 10 million higher than expected and retail sales soaring a record 18%, how quickly the economy is bouncing back has surprised nearly everyone. Continue reading
Market Blog
What is a Collateralized Loan Obligation (CLO)? Continue reading
DAILY INSIGHTS
Stocks struggling to regain footing. After Wednesday’s losses and headlines dominated by COVID-19, it won’t be easy for stocks to regain their footing today. The Nasdaq is holding up better and near flat this morning after its eight-session win streak ended yesterday. Asian markets were mixed on light holiday volume, with Japan among the laggards as the Nikkei dipped 1.2%. European markets are holding up relatively well and are mixed in midday trading. Continue reading
Market Vlog
“Why did God create economists? To make weathermen look good!” Continue reading
DAILY INSIGHTS
Some weakness. Stocks in the United States opened lower, following global markets in the red. This comes on the heels of a strong run, with the Nasdaq on an eight-day winning streak. Concerns over spreading COVID-19 cases and attention to US-European Union (EU) trade are putting a damper on things. Continue reading
DAILY INSIGHTS
Global stock markets rebound from overnight declines. S&P 500 Index futures were down nearly 1.5% overnight after a key advisor to President Trump expressed uncertainty about the China trade deal, but they swung back to gains following reassurances by the president and positive manufacturing data out of Europe. The MSCI Asia Pacific Index moved higher overnight, while the Euro Stoxx 600 Index was up over 1% at midday. Continue reading
Economic Blog
What can we learn about investment income opportunities from coupon-clipping environments? From 1977 to 2019, the price of the Bloomberg Barclays US Aggregate Bond Index rose in 22 calendar years and fell in 21 years, but, adding in the index’s coupon income, the index rose in 40 of 43 years. (The down years were 1994, 1999, and 2013.) Continue reading
Market Blog
The US economy has made impressive progress in recent weeks. As the economy re-opens, the way we assess the recovery has changed. In March and April, we were looking for evidence that growth in COVID-19 cases was decelerating—which thankfully it did—along with evidence that a recession was priced into stocks and that stimulus measures were sufficient to get us through the crisis. Continue reading
Economic Blog
The Citigroup Economic Surprise Index, or CESI, tracks how the economic data fare compared with expectations. The index rises when economic data exceeds Bloomberg consensus estimates and falls when data is below forecasts. The CESI has had a volatile year in 2020, as the effects of lockdowns in response to the outbreak of COVID-19 significantly impacted the global economy. As shown in the LPL Chart of the Day, following an all-time low in April, the index has skyrocketed to a new all-time high as the economy’s reopening process continues. Continue reading