Weekly Economic Update

Posted on December 21, 2015 by LSAConnect

Economic Update 12-21-2015

  • The most significant piece of economic data for the week was the FOMC’s decision to raise the fed funds rate for the first time in a decade, as overall conditions appeared stable enough to policymakers to withstand such a policy shift.  In other news, several industrial indicators continued to show some weakness, inflation remained tempered and monthly housing stats came in stronger for the prior month.
  • Equity markets began strongly in advance of the FOMC meeting, but gave up gains by week’s end.  Interest rates ticked slightly higher, which brought down bond returns during the week.  A trend of a strong dollar and low oil prices continued, which negatively affected commodity prices.

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Fed Note

Posted on December 16, 2015 by LSAConnect

Fed Note

The December meeting was again slated to be ‘the one’, as in the meeting where interest rate policy changed for the first time in a decade and almost exactly seven years after the fed funds rate was cut to just over zero.  And it finally happened.  The target fed funds rate has moved from 0.00-0.25% to 0.25-0.50%, so the equivalent of a quarter-percent move.  Continue reading →

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Weekly Economic Update

Posted on December 14, 2015 by LSAConnect

Economic Update 12-14-2015

  • Economic data for the week was led by a marginal showing in retail sales, a drop in consumer and business sentiment, as well as continued impacts of disinflationary impulses in import prices and PPI.
  • Global equity markets fell dramatically on the week with continued concern over the impact of falling crude oil prices.  Bonds fared well during the week, as interest rates declined.

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Weekly Economic Update

Posted on December 7, 2015 by LSAConnect

Economic Update 12-07-2015

  • Economic data again showed some mixed results, with manufacturing (and some services results for that matter) coming in weaker than expected, while the monthly employment situation report for November came in strong.  The labor report was seen as raising the chances for a Fed interest rate hike in December.
  • U.S. large cap stocks experienced a slightly positive week, while small caps and foreign equities lost ground—even despite a fall-off in the dollar which helped foreign returns.  Interest rates ticked upward as chances of Fed action in Dec. remained high, but not dramatically so.  Most commodity groups gained a few percent, except for crude oil, which saw declines yet again.

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Weekly Economic Update

Posted on November 30, 2015 by LSAConnect

Economic Update 11-30-2015

  • In a short holiday week, economic data was mixed, with durable goods and housing statistics generally higher, while consumer confidence indicators fell for the month
  • Markets experienced a typical tame holiday week, with U.S. large-cap stocks coming in flat, small caps doing a bit better, and foreign stocks mixed.  Bonds earned small gains with interest rates declining in the middle portion of the yield curve.  Commodities were also flattish on net, with oil ending the week close to where it started, but gold continued its recent declines.

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Weekly Economic Update

Posted on November 16, 2015 by LSAConnect

Economic Update 11-16-2015

  •   In a light week for economic data, retail sales disappointed somewhat while consumer sentiment and jobs/claims data remained strong.  Producer prices fell, especially on a year-to-year basis, which continues to reflect non-inflationary pressures throughout the system.
  • Equity markets fell back sharply on the week due to a number of economic and earnings-related factors.  Bonds fared slightly positively in the risk-off environment, as interest rates generally fell, with foreign issues outperforming domestic.  Crude oil prices declined dramatically, back towards $40/barrel upon ongoing supply concerns.

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Weekly Economic Update

Posted on November 9, 2015 by LSAConnect

Economic Update 11-09-2015

  • Economic data came in a bit better than expected on average, with the ISM non-manufacturing index and the October employment report surpassing expectations.  Conditions were less appealing on the manufacturing side, as ISM manufacturing, factory orders and related data continued to show some softness.
  • Domestic equity markets rose on expectations of a solid jobs report, while foreign equities generally lost ground with some negative impact from a stronger dollar.  Bonds fell back on rising interest rates, with corporates outperforming longer-term government debt.  Commodities, including crude oil, experienced weakness, due to dollar effects and lack of any positive catalysts.

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Weekly Economic Update

Posted on November 2, 2015 by LSAConnect

Economic Update 11-02-2015

  • Economic data for the week was again mixed, with advance GDP for the third quarter coming in at a tempered level, but not too far off of expectations, while housing numbers and consumer sentiment surveys disappointed.  However, the Chicago PMI manufacturing report moved back up into positive territory.
  • Equity markets gained a bit on the week in the U.S., but struggled abroad—especially in emerging markets.  Bonds also lost ground domestically upon higher interest rates.  Commodities were flat overall, but energy bounced back to gain a few percent on the week. Continue reading →
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Chart of the Week “Historical Asset Class Performance”

Posted on October 29, 2015 by LSAConnect
2015-10-28_15-10-20

Click image to enlarge

As we wrap up a turbulent third quarter, it seems the year of 2015 will be defined by increased volatility and uncertainty… characteristics of investing that make diversification so important. This week’s chart ranks the yearly returns of various asset classes going back to going back to 2000. As you can see from the color coding, there is very little consistency of year-by-year performance across the asset classes. The performance of an asset class in any given year has no bearing on how it will perform the following year. Implementing a balanced portfolio is of significant importance when attempting to provide more certainty and protection from downside risk, allowing peace of mind for you and your clients.

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Last Chance to Register for 2015 LSA Virtual Conference

Posted on October 29, 2015 by LSAConnect

LAST CHANCE!!!

Register Today to attend the 2015 LSA Virtual Conference.

DATE:  OCTOBER 30th     TIME:  9:30 – 2:30 Central

Welcome to the 2015 LSA Portfolio Analytics Virtual Conference. We are excited to invite you to a new way of conferencing.

Our virtual conference is created to provide not only the most recent information on the research and portfolio development that we provide, but to expand and explore other ways of using LSA to benefit your practice. This multiple track conference will allow you to engage with information, tools, and tips that is important to you and your staff. We will introduce a variety of new concepts, ideas and technological advancements that are going to allow the use of LSA to provide a user experience on another level. Worried about missing a meeting that you think is important? Don’t be! The LSA Virtual Conference allows you to watch the multitude of meetings at your leisure.

keynote speakers combined

For more information please CLICK HERE, or go to:  http://lsabeta.com/lsa-virtual-conference/

To Register NOW please CLICK HERE, or visit:  https://attendee.gotowebinar.com/register/3578259806984357634

Contact us for more information:  866-581-5724  OR INFO@lsaportfolios.com

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Fed Note

Posted on October 28, 2015 by LSAConnect

Fed Note:

Fed policy remains at the center of investment market focus, but the October meeting wasn’t expected to be a blockbuster one.  It didn’t disappoint, as there were no changes, but did leave December open as a possibility.

The FOMC calendar was designed with eight formal meetings this year, half of which feature a press conference afterward—so about one press event per quarter.  Major announcements and changes in policy aren’t expected in non-press conference months due to the high need for communication fine-tuning, avoidance of misunderstandings/misinterpretations and a proactive setting of future expectations.  No doubt, any rate hike would be coupled with extremely accommodative language and tone describing the intended slow and gradual path for any future hikes—at least based on recent economic data and comments from officials.

The FOMC statement acknowledged some deceleration in economic metrics over the past month or so (much of which we’ve reported on via manufacturing surveys and the like)—this is usually taken as dovish by economists, since it perpetuates the need to keep easing intact for a longer period of time. Continue reading →

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Weekly Economic Update

Posted on October 26, 2015 by LSAConnect

Economic Update 10-26-2015

  • Economic data on the week was focused on several housing reports, which came in better than expected; however, the much broader index of leading economic indicators fell backward a bit.
  • Global equity markets responded positively to news of possible (European Central Bank) and actual (China) additional quantitative easing measures designed to spur sluggish economic growth.  U.S. bonds lagged upon slightly higher interest rates, while foreign results were mixed due to a stronger dollar.  Crude oil declined dramatically again upon reports of higher inventories and higher-than-expected upcoming supply.

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