Weekly Economic Update

Economic Update 11-04-2019

  • Economic data during the week included the Federal Reserve lowering key interest rates by a quarter-percent for the third straight time. Insofar as data was concerned, several manufacturing metrics continued to show contraction, while housing/construction and the employment situation report for October came in stronger than expected.
  • Global equity markets rose in line with the U.S. Fed lowering rates, and extension of Brexit, and lack of any negative U.S.-China trade sentiment. Bonds rallied as rates across the curve ticked downward to reflect the newly-lowered short-term rate along with tempered inflation readings. Commodities were flattish overall, despite a drop in crude oil prices over the week.

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Fed Note

The Federal Reserve Open Market Committee decided to cut interest rates a third time, by another 0.25%, to a new range of 1.50-1.75%. As with the two prior cuts in recent months, this move was controversial. The economic community was mixed as to the underlying need for this continued easing, highlighted by the two dissents this time, by governors preferring to keep rates where they were.

The formal statement was little changed from September from a policy standpoint, but was simplified, which tends to follow Chairman Powell’s plain-language style. It noted that the labor market remains strong and economic activity continues to rise at a ‘moderate’ rate. Also noted again were strength in household spending, while business fixed investments and exports remain weaker than the FOMC would like. The term ‘act as appropriate’ has now been removed, which has signaled that this rate cut could be the last for a while (barring further economic deterioration).

The dashboard of relevant Fed variables continues to show mixed results, in keeping with the varied sentiment about the rate cuts:

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Weekly Economic Update

Economic Update 10-28-2019

  • Economic data for the week included weaker readings for durable goods and consumer sentiment. Housing data points were down for the month but mixed on a longer-term standpoint, while jobless claims fell, which was a positive.
  • Global equity markets generally gained on the week, with U.S. and foreign stocks performing largely in line. Fixed income returns were flat, as interest rates were again little changed from the prior week. Commodities gained due to sharp price increases for crude oil contracts.

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LSA Presents: Kevin Lane!

www.LSAstockIQ.com

LSA Presents: Kevin LaneLIVE Webinar Today at 3:30 Central

Kevin, a staunch proponent of “Fusion Analysis”, which combines multiple research disciplines into an unbiased data-driven approach to investing, founded FusionIQ in 2008. He currently serves as the CCO for IQvestment, a digital investment advisory firm.

Kevin Lane was featured as a member of Business Week’s 2002 “Analysts Who get It” A-Team for his notable stock-picking acumen.  A sought-after analyst, Kevin has been routinely cited over the course of his career in major media outlets such as; Bloomberg Television, Fox Business Television, CNBC, Barron’s, The USA Today, and Business Week. Additionally, he has been hired as a research consultant to many of the nation’s top hedge funds and trading desks.

Fusion 1

 

 

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Weekly Economic Update

Economic Update 10-21-2019

  • Economic news last week included mixed reports on the regional manufacturing and housing front. Additionally, retail sales and industrial production disappointed relative to expectations. The index of leading economic indicators declined slightly, in keeping with data that continues to show a mixed picture.
  • Equity markets experienced gains globally, based on decent headline earnings reports and some optimism about formalized trade progress. Fixed income was little changed in the U.S. on the week, while foreign bonds outperformed due to a weaker dollar. Commodities were also little changed on the week, with a divergence in the energy space between natural gas and crude oil prices.

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Weekly Economic Update

Economic Update 10-14-2019

  • In a slow week for economic data, producer and consumer inflation measures were mixed, but remained in tempered ranges. Labor releases were mixed as well, with government measures of job openings falling, while jobless claims remained low.
  • U.S. and foreign equity markets both gained several days last week with positive sentiment towards U.S.-China trade meetings staying on track. On the flip side, bonds fell as flows moved toward equities, pushing up interest rates a bit. Commodities generally moved higher, along with a spike in oil prices in keeping with new Iranian flare-ups in the Persian Gulf.

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Weekly Economic Update

Economic Update 10-07-2019

  • Economic data during the week included weaker-than-expected ISM manufacturing and services reports, in addition to a contractionary Chicago PMI. The employment situation report was mixed, with payrolls coming a bit below expected, but the unemployment rate fell to multi-decade lows.
  • World equity markets lost ground as concerns over global manufacturing slowdowns and economic weakness held back sentiment in the U.S. and abroad. Bonds, as usual, benefitted as rates fell in response. Commodities lost ground due to demand fears pulling down crude oil prices to their lowest levels in several months.

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LSA – Fusion IQ Stock Revisions

LSA – Fusion IQ Stock Revisions

Every quarter the LSA IQ models will be updated based on the FusionIQ’s algorithms. FusionIQ’s proprietary four-dimensional scoring model includes but is not limited to: valuation, balance sheet strength, improving financials, price momentum, sentiment, and a broad range of technical factors. The models are grounded in the belief that simpler is better, but more relevant information is preferred to less. The value-add of the IQ models comes from the stability presented using quality, time-tested factors, and from providing a dynamic weighting scheme which amplifies the models effectiveness by adjusting the factor weights for various market environments. The LSA IQ stock models update quarterly and are now posted for the October 1st, 2019 updates. If you need more stock models or if you want to spend more time with the IQ scoring process visit www.LSAstockIQ.com.

FusionIQ (the “Publisher”) is not registered as an investment advisor with any federal or state regulatory agency. Rather, Publisher relies upon the “publisher’s exclusion” from the definition of “investment advisor” as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. Please refer to disclosures page for more information. The Website is limited to the dissemination of impersonal and objective investment-related information, together with access to additional impersonal investment-related information and links. The publication of the Website on the Internet and the publication of any content should not be construed by any subscriber and/or prospective subscriber as Publisher’s (i) solicitation to effect, or attempt to effect transactions in securities over the Internet, or (ii) provision of any investment related advice or services tailored to any particular individual’s financial situation or investment objectives. Please consult your advisor before making any investment decisions.

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Weekly Economic Update

Economic Update 9-30-2019

Economic data for the week included positive results for personal income and spending, as well as durable goods orders, jobless claims, and a variety of housing metrics. Consumer confidence measures were mixed, however.

Global equity markets declined to varying degrees last week, with lack of positive progress on U.S.-China trade and potential for a brewing political crisis in the U.S. Governments bonds fared better, as investors fled risk, outperforming corporate and foreign debt. Commodities generally declined along with a stronger dollar, including a sharp decline again in crude oil as supply concerns waned. Continue reading

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Weekly Economic Update

Economic Update 9-23-2019

  • Economic data for the week was highlighted by the Federal Reserve lowering short-term interest rates by another quarter-point, in line with financial market expectations. Otherwise, industrial production and housing sales came in stronger than expected, several regional manufacturing indexes declined but remained expansionary, while the index of leading economic indicators was little changed.
  • Equity markets lost ground last week moderately, both in the U.S. and abroad. Bonds fared better, with positive returns in keeping with the Fed’s lowering of interest rates. Commodities rose due to a spike in crude oil prices on the heels of an attack on Saudi oil facilities, threatening near-term supplies.

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We’ve helped a lot of advisers transition from the world of paying basis points to a flat subscription fee and increasing their revenue significantly.  If you haven’t already, contact us today to see how to implement LSA’s models and trade them effectively.  866-581-5724 or info@LSAportfolios.com, http://www.LSAbeta.com

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Weekly Economic Update

Fed Note:

As expected, the Federal Reserve Open Market Committee lowered the fed funds rate a second time by 0.25%, to a new range of 1.75-2.00%. There were a few dissents, strangely in opposite directions, with one member wanting a larger 0.50% cut and two others voting for no cut.

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