From the desks of Stanley Katz & Lauren Madera
To our veterans and their families, thank you for the sacrifices you have made and the important service you have given to our nation.
The major US stock market indices posted tremendous gains this week (i.e., DJIA: +4.61%, S&P 500: +4.66%, Nasdaq: +5.74%) on the heels of Tuesday’s presidential election. All three now sit at historic highs and elevated price-to-earnings ratios. As you may recall, the 10-year US Treasury (UST) is often referenced as a risk-free return benchmark. The 10-year UST now resides at 4.31%. Several analysts site concerns if the 10-year UST reaches 4.54%, it may entice investors to reallocate from stocks to lower risk investments like USTs. Read Capital Group’s “Trump’s victory signals major policy shifts ahead” for a surface-scratching analysis of future expectations.
The other major event this week was the Federal Reserve meeting. Chairman Powell announced a 0.25% reduction to the Fed Funds rate. This may seem contradictory to the prose above (i.e., bond market yields have risen while the Fed cuts). Currently, the economy appears to be in good shape with inflation retreating and unemployment hovering near historic lows. Janus Henderson synthesizes things very well in their “Quick View: The Fed acknowledges the elephant in the room.”
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Capital Group:
Janus Henderson:
J.P. Morgan Asset Management:
Northern Trust:
Schwab:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. ClientFirst Financial Strategies, Inc. is a DBA of OneSeven, LLC (OneSeven). OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Securities offered through Fortune Financial Services, Inc. (Fortune), Member FINRA/SIPC. OneSeven and Fortune are separate entities. Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.
OneSeven and Fortune do not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third parties.