Posts by Michael Kane

Stocks Exert Their Muscles

There has always been some disconnect between stocks, bonds, and the economy. Stocks and the people who own are often the optimists of the group. They look forward and try to extrapolate the future winners and losers, willing to pay multiples of earnings or revenue in order to own a part of a company’s or…

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Don’t Fight the Fed

What a difference three months makes.  In mid-December the Federal Reserve raised the Fed Funds rate by 0.25%, the 4th such increase during 2018.  The December increase in the Fed Funds rate caused elements of the yield curve to invert (short-term rates higher than long-term rates) which is often a precursor to recession.  The economic…

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Good Riddance 2018

Volatility was truly back in 2018.  The year began well with the S&P 500 gaining over 5% in January, but then through mid-February it quickly suffered a 10% correction.  From there the U.S. stock market again rallied and by the end of the third quarter the S&P 500 was up over 10%.  The fourth quarter…

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Nice Quarter!

The third quarter of 2018 was a very good one for U.S. stock markets with the S&P 500 recording a gain of 7.7% bringing the year to date gain to 10.6%.  International markets have not performed nearly as well as the U.S. market this year as the MSCI EAFE (Europe, Australasia, Far East) Index was…

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Steady as She Goes!

July 2018 The second quarter of 2018 was less eventful than the first quarter.  As a reminder, U.S. stock markets began the year quite strong with the S&P 500 gaining 5.7% in January.  Then starting in late January through mid-February it suffered a sharp 10% correction. The S&P 500 recovered to end the 1st quarter…

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Volatility is back!

2017 was an exceptionally strong year for global stock markets. In the United States the S&P 500 was up 21.8%, many overseas markets fared even better. The momentum continued into January 2018 with the S&P 500 adding an additional 5.7% for the month. The S&P 500 peaked on January 26th and then things turned rather…

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