ACTIONABLE ADVICE FOR FINANCIAL ADVISORS: Newsletters and Commentaries Focused on Investment Strategy

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2015-01-06 00:00:00 2015: More Investment and Profits, Higher Rates, Dollar and Stocks by Brian Wesbury, Robert Stein of First Trust Advisors

Contrary to popular opinion, business investment is a key factor behind the current recovery. Productive investments have boosted profits to record highs and, in turn, those profits have driven stock prices to record highs. They should continue to do so.

2014-10-29 00:00:00 Greenspan: Price of Gold Will Rise by Axel Merk of Merk Investments

Any doubts about why I own gold as an investment were dispelled last Saturday when I met the maestro himself: former Fed Chair Alan Greenspan. Its not because Greenspan said he thinks the price of gold will rise I dont need his investment advice; its that he shed light on how the Fed works in ways no other former Fed Chair has ever dared to articulate. All investors should pay attention to this. Let me explain.

2014-07-01 00:00:00 LPL Financial Research Mid-Year Outlook 2014: Investors Almanac Field Notes by Jeff Kleintop of LPL Financial

At this years halfway point, we are pleased to offer the LPL Financial Research Mid-Year Outlook 2014: Investors Almanac Field Notes containing key observations and updates to our outlook for 2014. Similar to a farming almanac, our Investors Almanac is a publication containing a guide to patterns, tendencies, and seasonal observations important to growing. The goal of farming is not merely to grow crops, but to sustain living thingsinvesting shares the same goal.

2014-03-09 00:00:00 The Problem with Keynesianism by John Mauldin of Millennium Wave Advisors

Keynes himself would appreciate the irony that he has become the defunct economist under whose influence the academic and bureaucratic classes now toil, slaves to what has become as much a religious belief system as it is an economic theory. Men and women who display an appropriate amount of skepticism on all manner of other topics indiscriminately funnel a wide assortment of facts and data through the filter of Keynesianism without ever questioning its basic assumptions. And then some of them go on to prescribe government policies that have profound effects upon the citizens of their nations.

2014-02-15 00:00:00 The Economic Singularity by John Mauldin of Millennium Wave Advisors

Today, let’s think about central banks and liquidity traps and see if we agree that central bankers are driving the car from the back seat based upon a fundamentally flawed theory of how the world works. That theory helped produce the wreck that was the Great Recession and will have its fingerprints all over the next one.

2014-02-05 00:00:00 The Fed's Forced Feeding Will End Badly by Dawn Bennett of Bennett Group Financial Services

This financial market reminds me of when we were kids sitting at the dinner table and the one thing almost all of us heard back in the 1970s was "that plate better be clean by the time I get back or else." This left us with images of torture that would follow the "or else."

2014-01-23 00:00:00 Economic Growth is Likely to Improve in 2014 by Derek Hamilton of Ivy Investment Management Company

We believe a global economic upturn is likely in 2014, although the overall growth rate will remain sluggish. We think developed countries will show the largest improvement, which in turn will help support growth rates in emerging markets.

2013-12-24 00:00:00 A Spoonful of Sugar by Peter Schiff of Euro Pacific Capital

The press has framed Ben Bernankes valedictory press conference last week in heroic terms. Its as if a veteran quarterback engineered a stunning come-from-behind drive in his final game, and graciously bowed out of the game with the ball sitting on the opponents one-yard line. In reality, Bernanke has merely completed a five-yard pass from his own end zone, and has left Janet Yellen to come off the bench down by three touchdowns, with no credible deep threats, and very little time left on the clock.

2013-12-21 00:00:00 Start Me Up: Fed Announces a Much-Anticipated Taper by Liz Ann Sonders of Charles Schwab

The Fed decided to begin tapering its QE-related bond purchases with a reduction of $10 billion; split evenly between Treasuries and mortgage-backed securities. In a sign that tapering was already priced in, the stock market surged on the announcement; while bond yields remained quite tame. The Fed announced slightly sunnier economic forecasts, suggesting quantitative easing could wind down within a year.

2013-12-19 00:00:00 A Dovish-Bullish Taper by Brian Wesbury, Bob Stein of First Trust Advisors

They finally did it. At Chairman Bernankes next to last meeting, the Federal Reserve announced a modest tapering of quantitative easing, reducing its monthly purchases of Treasury securities and mortgage-backed securities by $5 billion each ($10 billion total) to $75 billion starting in January. As a result, the size of the Feds balance sheet will continue to rise, but slightly more slowly than before.

2013-12-17 00:00:00 Taper Time? by Scott Brown of Raymond James

There are many arguments for and against an initial reduction in the Feds monthly rate of asset purchases, but the balance has shifted toward a December taper. It appears to be a very close call, but even if the Fed decides to delay again, we all know (or should know) that QE3 is going to wind down in 2014.

2013-11-22 00:00:00 What is the Current Market Reality? by Giordano Lombardo of Pioneer Investments

At this years Global Investment Forum, the discussion among Pioneer investment professionals was generally positive. Of course, everyone was conscious of the current market reality: that the major force behind recent positive, though benign, market trends is the unprecedented creation of liquidity and extremely loose stance of monetary policies around the world. Monetary policy alone cannot be the only conduit to a new economic model of income growth and job creation.

2013-11-20 00:00:00 Yellen: Farther To Go by Scott Brown of Raymond James

Janet Yellen gave a balanced assessment of how monetary policy will be conducted during her tenure as Fed chair. However, the financial markets perceived a dovish tilt. She stressed that conditions in the labor market are still far from normal and noted that inflation has been running below the Feds goal of 2% and is expected to do so for some time. However, Yellen noted that there were risks of removing support too late as well as too soon. QE3 cant go on forever.

2013-11-12 00:00:00 Markets Vacillate Between Stronger Economy and Fed Accommodation by Bob Doll of Nuveen Asset Management

U.S. equities finished mostly higher last week as the S&P 500 increased 0.6%, ending higher for the fifth straight week. The return of central bank action was a primary concern. The European Central Bank (ECB) surprised investors with a 0.25% rate cut, while the debate over the Federal Reserves impending tapering decision continued in earnest.

2013-10-28 00:00:00 Beyond the Noise, More of the Same? by Scott Brown of Raymond James

Delayed economic data reports have begun to arrive. The figures point to a disappointing 3Q13 (relative to expectations) and the partial government shutdown is unlikely to help in 4Q13. The recovery had been poised for improvement this year, but fiscal policy has been a major headwind. Economic figures will be distorted in October (due to the government shutdown) and in November (due to the rebound from the shutdown). Yet, beyond the noise, the underlying pace of growth is likely to remain disappointing in the near term. Is there hope for 2014?

2013-10-21 00:00:00 Europe Turning a Corner? by Brandon Odenath of J.P. Morgan Funds

Since late last year, investors have seen periods of strong outperformance by assets from the most impacted parts of Europe, leaving many observers wondering if Europe is turning a corner. Intervention by the ECB and the ability of those liquidity injections to stop the bleeding in the economy has helped. The reduction of austerity and drag coming from fiscal policy should be the key to faster economic growth.

2013-09-19 00:00:00 When Doves Cry, "Not Yet" by Liz Ann Sonders of Charles Schwab

The Fed surprised markets and the consensus by maintaining its full QE bond buying program; while both stocks and bonds soared on the news.

2013-08-19 00:00:00 The Tick-Tock on Tapering by Scott Brown of Raymond James

The Feds September 18 decision on whether to begin reducing the pace of asset purchases will depend on the economic data (the job market figures, in particular), but theres a growing consensus that were likely to see a modest initial step, as a compromise between Fed officials who want to end the program sooner and those that want to see it continued. There are other things for policymakers to consider. One is the possibility of an adverse reaction in the financial markets. Another concern is the low underlying trend in inflation.

2013-08-13 00:00:00 So Now What? by Scott Brown of Raymond James

What did we learn last week? The Fed may not be in any hurry to begin reducing the rate of asset purchases. The economic data suggest a mixed picture.

2013-07-19 00:00:00 Is Inflation Really Gone Forever? by Jon Ruff of AllianceBernstein

Recent movements in asset prices suggest that markets have forsaken any possibility of an inflation outbreak in the next decade. We believe that view is far too sanguine.

2013-07-03 00:00:00 Failure to Communicate, Part 2 by Scott Brown of Raymond James

The financial markets have begun to reassess Fed Chairman Bernankes monetary policy comments. Several Fed officials spoke last week, each echoing Bernankes key messages: 1) policy will remain data-dependent, 2) tapering is not tightening, and 3) a rise in the federal funds target rate is a long time off. With an emphasis on data-dependence, the economic figures should get more scrutiny from the markets. Still, theres a sense that hope plays a major role the Feds economic outlook.

2013-06-08 00:00:00 Banzai! Banzai! Banzai! by John Mauldin of Millennium Wave Advisors

In practice it may be harder for Japan to grow and generate inflation than it might be for other major nations. Today we’ll focus on Japanese demographics. While the letter is full of graphs and charts, it does not paint a pretty picture. The forces of deflation will not go gently into that good night.

2013-05-31 00:00:00 The Week in Fiscal and Monetary Policy by Scott Brown of Raymond James

The financial markets were more than a bit confused by the minutes of the April 30 May 1 Federal Open Market Committee meeting. Some Fed officials wanted to begin tapering the rate of asset purchases as early as June. However, that wasnt a majority opinion. Fed Chairman Bernankes testimony to the Joint Economic Committee of Congress was balanced, but strongly suggested that monetary policy is unlikely to be tightened anytime soon. In his testimony, Bernanke also lectured congress on fiscal policy, which has been completely wrong-footed this year.

2013-05-25 00:00:00 The Mother of All Painted-In Corners by John Mauldin of Millennium Wave Advisors

Japan has painted itself into the mother all corners. There will be no clean or easy exit. There is going to be massive economic pain as they the Japanese try and find a way out of their problems, and sadly, the pain will not be confined to Japan. This will be the true test of the theories of neo-Keynesianism writ large. Japan is going to print and monetize and spend more than almost any observer can currently imagine. You like what Paul Krugman prescribes? You think he makes sense? You (we all!) are going to be participants in a real-world experiment on how that works out.

2013-05-14 00:00:00 The Budget Deficit by Scott Brown of Raymond James

The Monthly Treasury Statement showed a large budget surplus for April. Some of that may prove to be temporary. Income was pulled forward into 2012 ahead of expected tax increases in 2013 and that was reflected in higher tax payments in April. Some of it is payback from the bailouts of a few years ago (for example, earnings from Fannie Mae and Freddie Mac). However, much of the improvement reflects a rebound from a severe recession. Tax revenues are recovering and recession-related expenses are trending lower.

2013-05-06 00:00:00 All's Well That Ends Well by Scott Brown of Raymond James

The economic data reports were decidedly mixed last week. However, the April Employment Report exceeded expectations, which provided a good excuse for share prices to move higher. Bonds were whipsawed, encouraged by the view that the Fed was less likely to taper its asset purchases, but then hit hard by the better-than-expected payroll figures.

2013-05-02 00:00:00 Fed Doesn't Budge by Brian Wesbury, Bob Stein of First Trust Advisors

It would be hard to find a policy statement from the Federal Reserve with as few changes as the one issued today. The Fed made no changes to monetary policy and only minor changes to the language of its statement. Even the lone dissent, from Kansas City Fed Bank President Esther George, was a carbon copy from the last statement in March.

2013-04-25 00:00:00 The End of “Expansionary Austerity?” by Scott Brown of Raymond James

A few years ago, an economic paper by Harvard professors Carmen Reinhart and Kenneth Rogoff helped fuel the push for austerity. It was met with some criticism from economists, but was widely embraced by the press and by politicians on both sides of the Atlantic. The study has now been demonstrated to have had serious flaws, but will those in power fold? Or will they double down on bad economic policy?

2013-03-25 00:00:00 Fed Outlook: Cautiously Optimistic or Just Hopeful? by Scott Brown of Raymond James

The Federal Open Market Committees latest policy meeting generated few surprises. The FOMC maintained its forward guidance on the federal funds rate target, which is still not expected to start rising until 2015, and did not alter its asset purchases plans ($40 billion per month in agency mortgage-backed securities and $45 billion in longer-term Treasuries). However, in his press briefing, Bernanke indicated that the pace of asset purchases could be varied as progress is made toward the Feds goals or if the assessment of the benefits and potential costs of the program were to cha

2013-03-05 00:00:00 No Rest for the Wicked by Scott Brown of Raymond James

With headwinds fading, the U.S. economic recovery appeared poised to pick up more substantially in 2013. Unfortunately, fiscal policy is going in the wrong direction.

2013-02-21 00:00:00 Cracks Appear in the French Economic Model by Darren Williams of AllianceBernstein

Today's PMI data point to a deepening recession in France at a time when Germany is showing tentative signs of life. Is the euro crisis exposing the weaknesses of the French economic model?

2013-02-19 00:00:00 All is Not Well Down Under by Russ Koesterich of iShares Blog

Though Russ continues to like Australian equities for the longer term, he explains why he may downgrade his near-term view of the Australian market soon.

2013-02-19 00:00:00 On Competitive Devaluations by Scott Brown of Raymond James

Aggressive monetary policy moves in recent years have been accompanied by a growing fear of a currency war. In a currency war, or competitive devaluation, countries attempt to weaken their currencies to boost exports, but each devaluation leads to counter devaluations. That's not what's going on now. However, whether a country is purposely devaluing its currency or is merely pursuing accommodative monetary policy is irrelevant, the consequences are the same. The recent meeting of G-20 finance ministers and central bankers highlights the lack of coherent policies to boost growth.

2010-03-05 00:00:00 Intrade Odds for Obamacare to Become Law by 6/30/2010 by Team of Bespoke Investment Group

The odds for Obamacare to become law by June 30, 2010 jumped to 60 percent on Intrade a few days ago after the president pushed for the Senate to use reconciliation to pass reform, a procedure that requires only 51 votes and cannot be filibustered. Before then, odds ranged from 30 to 35 percent.

2010-02-19 00:00:00 Euro-Area Imbalances: Is Germany Part of the Problem? by Darren Williams of Alliance Bernstein

The stagnation of consumer spending and the weakness of wage growth in Germany over the past decade deprived Greece and other peripheral European countries of their most important trading partner. Expansionary German policies could help correct imbalances in the euro area, and remove the need for bailouts.

2010-01-12 00:00:00 Things Fall Apart in Eurozone by John Browne of Euro Pacific Capital

2009-12-30 00:00:00 Monetary Policy: Inflation-Deflation, Debt, Excess Reserves, Currency Volatility by Michael J. Schussele of Michael J. Schussele, CPA

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