Anticipation by markets that the bill raising the debt ceiling, having passed the House on a bi-partisan basis, is about to pass the Senate and become law before the US Treasury runs out of the ability to raise funds has boosted the stock market through the top of the range over the past 9 months. Earnings and forward-looking guidance by semiconductor companies is powering the NASDAQ averages. A word of warning: even with the outstanding...
With the debt limit rapidly approaching on June 1st as US Treasury Secretary Janet Yellen has stated repeatedly, it is time for Congress and the White house to get serious. It kind of seems like that is happening but markets were more interested in artificial intelligence and Nvidia’s earning report and future forecasts. At least the S & P 500 and the Nasdaq paid attention to those earnings. The Dow not so much. The Dow...
With spring in the air, bees buzzing, and the sun trying to make its appearance we thought this would be the perfect time to take a look back on what was happening one year ago. Last year's hot topics were full of spry. Here are some highlights from May 2022. “ The Fed announcement came and markets continued lower. ” “I have a rule: the market reaction on the day of a Fed announcement is...
Another Fed rate increase and another bank failure. Just another ho-hum week for markets. They moved the Fed funds rate to 5-5.25% while First Republic Bank was taken over by the FDIC and then purchased by JP Morgan Chase with all deposits secured,1st Republic branches remain open and functioning, borrowers continue to pay loan payments and JP Morgan Chase gets even larger. Other regional bank stock prices continue to suffer while the Fed changes its...
Today 1st quarter GDP was released indicating a slowdown in economic activity. Economic growth slowed to 1.1% in the first quarter from 2.6% in the last quarter of 2022. Higher interest rates are having an impact on growth and bank failures at the end of the first quarter did not help. A full 2nd quarter will give us a better indication of the banking landscape. Consumers continue to power the economy while business spending is...
As the earning season from the first quarter began, some positive bank earnings gave some confidence to the stock market. As the earnings season progresses over the next couple of weeks, we will have a better idea about the economy as well as stock prices that remain overvalued. As I mentioned before, complacency continues with the VIX(volatility index) remaining under 20. We have a Federal Reserve meeting at the beginning of May with markets predicting...
This week's inflation news provides some positives to markets. Interest rates are staying steady at still attractive rates while the SP 500 is maintaining its range between 3900 and 4200. Costs for goods are increasing at a moderate rate but service costs continue to lead inflation. Try finding a hotel room at a reasonable price or go to a restaurant where prices are not inflated. That being said, with markets less worried about inflation and...
With a market range bound as we mentioned last week, what will move the market. Complacency is high, mid to long term interest rates are moving slightly lower, inflation indicators are moderating, and earnings are static, but announcements are about to begin from first quarter results. Fear of bank failures is still in the air with the CEO of JP Morgan Chase saying worries are not over but no notable failures this week. Bank failures...
We want to ask you… Do you have student loans? Does your adult child have student loans? Do you have questions about financing for your higher education expenses? Do you have questions about financing for your children's higher education expenses? Follow our link: Student Loan Industry Updates to get insight & watch our webinar with Gradfin to learn more. Let's really understand the NOW in student loan financing together. Market Now: As we near the...
2023 Annual Offer Letter to all SAS Financial Advisors Clients SAS Financial Advisors advises all clients that our firm Form ADV has been updated. A material change is reflected in Form ADV Part 2a, Item 2. For all new, not existing, SAS Clients, assets under management up to the first $1 million will be charged a fee of 0.85% or 85 basis points. Previously the firm held a range of 0.70%-0.85%. This change does not...
Lots of market updates this week but let’s start with this interesting, published research. Where a tested, established and repeated insight that said individuals/ families' measurement of happiness with income top out at about $75,000 adjusted for inflation. The marginal utility of earnings over that figure does not result in an increase in happiness. The Study performed in 2010 and an opposing hypothesis that more income does increase happiness. Turns out for the majority of...
Today Fed Chairman Powell testified in front of the Senate and stated that it is likely that interest rates will rise farther than markets anticipate in order to slow the economy and in turn slow inflation. The result of his statements was a stock market decline as well as an increase in interest rates with the 2-year US Treasury rate reaching 5% for the first time since 2006-before the great recession and financial meltdown. As...
