PORTFOLIO TRADE DAY!
TODAY (FRIDAY, SEPTEMBER 5th, 2014) is trade day for the LSA models listed below.
Please login to the LSA site to view all changes:
Revisions are NOW POSTED today, September 3, 2014.
Private Client (Not Traditional)
PC Tax Efficient
PC L100K 75-100
PC Blended
Schwab NTF (Not Traditional)
BME
CBP
THESE ARE THE ONLY MODELS WE ARE REVISING AT THIS TIME!
If you have any questions, please feel free to contact us at support@LSAportfolios.com or call us at (866) 581-5724.
LSA will be making changes to the models listed below to be traded on Friday, September 5, 2014. Revisions are all posted online and ready to view and prepare to trade. These are the ONLY models that we are making revisions to at this time.
The portfolio revision video explanation and presentation has also be posted under “Monitoring Reports/Portfolio Management today! Please login to the LSA website to view detailed information behind this round of revisions.
** TRADE DATE SCHEDULED FOR FRIDAY SEPTEMBER 5, 2014! **
Private Client (No changes to PC Traditional strategies)
PC Tax Efficient
PC L100K 75-100
PC Blended
Schwab NTF (No changes to Schwab NTF Traditional strategies)
BME
CBP
THESE ARE THE ONLY MODELS WE ARE REVISING AT THIS TIME!
If you have any questions please feel free to contact us at support@LSAportfolios.com or call us at (866) 581-5724.
Amid a week of light trading ahead of the long Labor Day/Back-to-School holiday weekend, domestic equity markets continued marching higher. The S&P 500 index cleared the 2,000 psychological price barrier for the first time, more than 16 years after the index surpassed the 1,000 level in February 1998. The positive week was helped by a stronger Q2 real GDP report, robust durable goods orders, and upbeat consumer confidence reinforced by multiple survey indices. Small cap outperformed mid and large cap stocks as investor sentiments were high. Energy, utilities, and healthcare sectors outperformed industrials, consumer defensive, and technology sectors. Continue reading
U.S. stocks experienced another positive week, with U.S. large outperforming other segments and foreign equity. From a sector standpoint, financials and industrials outperformed while telecom and energy lagged with the weakest, yet still positive, returns.
Outside the U.S., returns were led by the larger emerging markets, with Russia, Brazil and India all gaining upwards of +2%. Japanese and Chinese stocks were two of the rare losing regions on the week. There certainly appears to be a shift towards higher levels of comfort in emerging markets, as economic conditions may have bottomed, while concern has risen in developed Europe due to lack of growth influences—recent returns reflect this evolution.
Bonds sold off on the week, with yields backing up from lows the prior week on stronger economic news and perhaps perceptions of the Fed minutes pointing to hawkishness. As expected, longer duration/low coupon debt such as Treasuries felt the bulk of the pain, while shorter duration and floating rate debt experienced the largest boost. Year-to-date, long Treasuries remain in the lead, but the majority of bond groups are in the positive. The dollar strengthened by a percent or so, but foreign debt performed well on the week despite the headwind—especially European bonds—as lackluster economic data pointed to additional accommodative measures. Continue reading
Stocks experienced a positive week, as geopolitical concerns again faded into the background until later in the week. From a sector standpoint, health care and technology shares gained several percentage points while energy and financials lagged—the former coupled with falling petroleum price trends.
Foreign markets experienced higher-profile news than in the U.S. Other than a few outliers, the bulk of nations experienced positive returns, led by the European periphery, Brazil and India. Prospects in those areas appeared a bit more promising than in core Europe and Japan, although returns among regions didn’t differ a great deal. Continue reading
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YOU MUST REGISTER BY AUGUST 18, 2014.
The hotel WILL sell out for the Plaza Art Fair & rooms will be released after this date and will no longer be guaranteed.
Two Steps to Register for the LSA National Conference:
AND ( you must complete both steps to register)
For questions or additional information about our member conference, please contact Ryan Kasper at 866-581-5724, or email ryan@LSAportfolios.com and he will be happy to assist you with anything you need. We are truly excited with the program we are putting together for you as we continue to reinforce our commitment to your success.
We look forward to hosting you in Kansas City.
– The LSA Team
Markets were negatively affected early in the week, due to again increased tensions in the Ukraine, and comments from Poland’s Prime Minister about the situation, but equities recovered some losses by Friday as Russian military exercises ended—U.S. equities were actually in the black. Small-cap stocks bucked the trend of late by posting stronger returns than large-caps; some of the valuation premium had been trimmed during the last several weeks of poor performance, but it’s still present. From a sector perspective, consumer discretionary and materials outperformed while telecom lagged by dropping several percent on the week (although telecom is a tiny sector, with results impacted by Sprint’s extreme price drop after deciding to not pursue T-Mobile).
From its peak on July 24, the S&P has pared back by just under -3%, although it has certainly felt like more, with volatility (measuring by VIX) rising up from lows around 10 at that time to 16 last week. Then again, as we’ve previously discussed, the VIX offers a fairly limited view on things, as a week of +/- 1% daily changes is certainly more volatile than one with a series of +/- 0.25% changes—although the net result could be exactly the same. Continue reading
Despite a strong U.S. Q2 GDP report and several improving economic data, financial markets took a downturn at the end of the week after no major surprises from last week’s FOMC meeting. As expected, the Fed kept the short-term rate at 0.25% while reducing its asset purchases by another $10 billion to a total of $25 billion starting in August. U.S. equity markets sold off across the board. Small cap stocks were deeper into the red zone for the year-to-date performance. Defensive sectors fared better. Telecom, healthcare, consumer discretionary and utilities sectors outperformed energy, industrials and financials in the S&P 500 index. Continue reading
Fed Note:
The Federal Reserve met today and proceeded according to the recent plan. The taper continued, with Treasury/MBS purchases being wound down from $35 bil./mo. to $25 bil./mo. At this pace, QE Fed buys should end by October. Other comments made in the release alluded to economic strengthening, relative to the difficult winter especially, labor market improvement, but continued frustrations in housing, which has lagged it’s normal point in previous modern recoveries. Interestingly, Philadelphia Fed Pres. Charles Plosser voted against the guidance language alluding to a low Fed Funds rate for a ‘considerable time’ after QE ends, as time-dependent and not helpful considering the better conditions.
On to the decision factors and where they stand: Continue reading
Economic Update:
Stocks were mixed on the week, with inflation coming in at a tempered rate, earnings season continuing. Large-caps generally outperformed small-caps, which are negative year-to-date. Sectors leading the way were energy and tech, up nearly a percent, while consumer staples and discretionary stocks lagged with negative results.
Developed market stocks in the U.K., Europe and Japan were little changed on net during the week, but peripheral Europe proved to be the winners. Emerging markets experienced a solid week, with China leading the way—Chinese flash PMI from HSBC was stronger than expected, at 52, a 18-month high.
Indonesian markets have experienced a double-digit month with the election of a pro-reform advocate. Hopes are similar to those of India, in that business-minded leadership will result in better ties to developed markets and more certainty in policy (as opposed to arbitrary, short-term political agenda-driven decisions emerging market nations are sometimes notorious for). On the negative side, Russian stocks suffered on additional questions and tension with Ukraine, as well as a central bank 0.50% interest rate hike designed to bring some currency stability and reduce inflation risks amidst international sanctions. Continue reading
Economic Update
A subdued market week was shattered on Thursday with the airline crash in the Ukraine as well as a military offensive in Israel/Gaza, which caused the worst drop in two months (albeit ‘only’ -1%), although conditions improved Friday to bring returns back to a net positive. From an industry standpoint, technology and financials outperformed, gaining over a percent, while health care and telecom lagged with marginal losses. Small-cap stocks suffered a bit in the midst of comments from Janet Yellen in regard to perceptions of their overvaluation (you can’t say we didn’t warn you before now).
U.S. equities were in the midst of the 2nd quarter earnings season, which so far has been good. In the S&P, with a quarter of companies reporting so far, ¾ have topped street earnings estimates. Revenues are also coming in above average, with a similar ¾ of firms coming in ahead of expectations and by a wider margin than expected.
Internationally, developed and emerging markets on performed roughly in line on net. Individually, Japanese stocks gained a percent and a half, with the U.K. roughly half that and Europe just a marginal increase. Strength in several emerging nations, namely Turkey and Brazil, outweighed -5% losses in Russia following the Ukrainian plane crash with potential Russian connections. Chinese GDP for the 2nd quarter was a tenth or two higher than expected, coming at 7.5%, boosting stock prices and hopes. Continue reading
LSA Connect 