One of the big pieces of news in the financial world today focuses on General Electric (GE). The iconic American conglomerate has been removed from the Dow Jones Industrial Average, and its stock will no longer be included when the index is calculated. It will be replaced by the drugstore chain Walgreens.
Brad McMillan, Commonwealth’s CIO, recaps the market and economic news for May. It was a good month, continuing the recovery from the pullback we saw at the start of the year. In the U.S., markets were up almost across the board. Consumers continue to spend, and businesses remain confident—with manufacturing doing particularly well. Plus, the government is contributing to this growth by cutting taxes and spending more. When we look at emerging and developing markets, however, it's a different story. Stay tuned to learn more. Follow Brad at blog.commonwealth.com/independent-market-observer.
Much of the economic data suggests that the slowdown in the first quarter is passing—this morning’s personal spending report is a good example. But, as always, what matters most for the economy is jobs.
Institutional-quality research for you and your clients. Guidance on investment management programs, equities, fixed income, and alternatives. A dedicated SRI/ESG resource. Direct access to our chief investment officer. That’s the value-add you get from Commonwealth Financial Network’s Investment Research team.
First, there was “Grexit,” which was the name given to the possibility that Greece would leave the eurozone. Then, there was “Brexit,” the plan for the U.K.’s exit from the European Union, which is actually happening (at least potentially). Now, we have “Italeave,” which I think sounds better than the other contender, “Italexit.” So what’s going on with Italy?
We closed yesterday’s post on whether markets are efficient with the conclusion that it could be possible to beat the market. But, to do so, we would need either better information or to view things differently—specifically referencing time horizons as one way to do that. Let’s start with a couple of areas where better information is a real possibility. Then, we’ll take a deeper look at the second idea, which is both more subtle and more interesting.
Growing your business through practice acquisition is a good goal, but it's a long-term strategy that can take years to accomplish. How can you meet your growth objectives in the meantime? By focusing on these client-facing activities that are proven revenue drivers.
Oil has been in the news quite a bit recently. Prices have risen to multiyear highs, and the recent decision by the U.S. to reimpose sanctions on Iran has rattled markets even further. We know that oil prices are a key risk indicator for the economy, but is it time to start worrying? Plus, what do higher oil prices mean—if anything—for the financial markets?
As we start moving further into May, I think it’s a good time to take a look back at April’s economic news, plus what to expect in the month ahead.
As we move away from the financial crisis and as policies normalize, it is a good time to take a look at what the removal of those policies might mean. After all, many of the actions taken in the aftermath of the crisis were explicitly designed to do certain things. If those actions were successful, then presumably their reversal would have the opposite effect.
