Despite a swarm of bad news (higher inflation, interest rates, election uncertainty, unending wars) the stock indices remain higher for the year. The “Dow” is up 6.4%, and the more representative S & P 500 Stock Index is up 11.90%. Why? Corporate profits are improving at a much faster pace than anticipated. Interest rates, while…
The second quarter of this year saw continued volatility in stock prices. However, despite multiple wars, higher inflation, and potentially higher interest rates, two of the major market indices – the S & P 500 Stock Index and the Dow Jones Industrial Average – made record highs. Both indices are up about 8.6% year-to-date. Why?…
The first quarter of this year was a wild one for the stock market. The S & P 500 Stock Index lost about 4%, and the Dow Jones Industrial Average fell about 3.25%. In late January the two indices set all-time highs. The culprit: the Iran war – sending gasoline prices up about 30%, pointing to higher inflation and possibly higher interest rates,…
2025 was another good year for stock investors. The DJIA was up almost 14% and the S & P 500 Stock Index rose over 16%. Despite wars starting and stopping, tariffs, persistent inflation, unfounded recession fears, and continued political gridlock, the market responded to the tried-and-true catalysts: Interest rates and corporate profits. Both were well-behaved. The Federal reserve began lowering interest rates, and corporate profits…
Our cautious outlook for the third quarter was met with continued record highs for the stock indices. The tariffs have not been as onerous as investors had feared, mostly because, so far, companies have not passed on their higher costs to consumers. The Federal Reserve has begun lowering interest rates due to a weakening labor…
“Resilient” is the often-used word for the U.S. Stock market this year. A better word might be “unbelievable”. Despite the threats and imposition of trade tariffs, a military attack on Iran, a budget busting tax and spending bill which could send interest rates higher, and two ongoing overseas wars, the stock market has set record…
The first quarter of 2025 was the worst quarter for stocks in 3 years. Why? The new administration promised less regulations, investor friendly merger approvals, lower inflation, and a stronger economy – all usually good for stock prices. We have not seen any of that yet. We have seen lower interest rates, but for the…
2024 delivered another good year for stock investors – the second year in a row with a 20% plus gain in the S & P 500 stock index. Granted the S + P was powered by a handful of big technology stocks e.g., Apple, Amazon, Alphabet, Meta et al. Without them the gain was less…
The third quarter produced another record high for the DJIA (42,313) and the S & 500 stock index (5,738). Evidence of a “soft landing” (falling inflation and continued economic and earnings growth) encouraged investors to buy stocks and bonds – the 10 year Treasury bond yield falling to 3.75% (bond yields fall when their prices…