There is a new meaning to the expression “Made in China” as we see the impact of the Chinese stock market. Last week the markets started off on the wrong foot with both the Dow and the S&P 500 ended down 6%. That’s the worst start for the Dow ever, and the worst for the S&P 500 since 1927. China halted their trading twice last week and oil continued to plummet. The good news was the jobs report which beat expectations.
Why are investors buying corporate bonds when they know interest rates could go up at anytime? That’s an interesting part of the debate. It could be that investors are buying corporate bonds because they really don’t believe interest rates are going up anytime soon. We are watching this closely because that determines how we allocate our portfolios.
It’s earnings season and better than expected earnings reports can help investors. However, we must remember that these expectations have been lowered which means we could still see negative earnings growth.
A client has asked, “With all the negative issues going on around the world, where is the good economic news?” In this post we will share the bright spots in a bombardment of negative economic news. Watch the video.
Is this a market correction or a bear market? Does the US have a solid foundation compared to the rest of the global economy and could the next few months hold more emotionally driven volatility? We answer all these questions and more in the video.
People are not feeling wealthy. We can see by our research that shows they are paying down debt but they are not spending money on consumer goods. This could be because wages have not gone up with the jobs rate. More in the video.