AUTHOR: TOWNE SCHERER.COM 5/9/2016: Towne Scherer Private Wealth Management BLOG:
Time to Presume
And then there was “1”…as Cruz and Kasich suspend their campaigns, making Donald Trump the presumptive Republican nominee, according to a CNN report 5/6/2016. This followed as crushing victory by Trump in the Indiana primary. Nevertheless, in the wake of these GOP events, Ryan, Speaker of the House of Representatives, refused to back Trump while the Senate Majority Leader , McConnell, said he’d back Trump. Should we presume there is some fence mending in the future, too?
Jobs, Interest Rates and Oil
The jobs report disappointed, adding only 160,000 jobs, fueling speculation that the Federal Reserve might keep interest rates low for another year, according to an AP report 5/6/2016. In addition, the Market Realist says the US crude oil rig count fell below 400 in the week ending April 22, 2016, although oil productivity was up as a result of better efficiency. This begs the question, “Is better efficiency equal to less jobs?”
“It’s deja vu all over again.”
Value stocks, apparently, have staged a comeback versus growth stocks after a long losing streak, according to the LPL Research Weekly Market Commentary 4/ 25/2016. The commentary points out that in the Russell 1000 style indexes, growth has outpaced value for, get this, almost a decade. The report goes on to suggest that one start paying attention to the largest value sector (financials) vs. the largest growth sector (Technology). Perhaps, one might even conclude, that the current environment of increasing interest rates might be playing a part in this shift. Wait a minute. Wasn’t it around a decade ago we knocked interest rates down to a historic low? As Yogi Berra said, “It’s deja vu all over again.”
Remember
“Follow the Investment Trends”
With
Wave and Wind
Only available through
Towne Scherer Private Wealth Management
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal, and potential liquidity of the investment in a falling market. Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time. Because of its narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.
All investing involves risk including loss of principal.
INDEX DESCRIPTIONS
All indices are unmanaged and may not be invested into directly. The Russell 1000 Index measures the performance of the large cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market. The Russell 1000 Value Index measures the performance of the large cap value segment of the U.S. equity universe. The Russell 1000 Growth Index measures the performance of the large cap growth segment of the U.S. equity universe.