Research & Market Insights Market Insights

01.03 2013

Summary of Key Provisions of the Fiscal Cliff Deal

At approximately 1:30 a.m. on January 1, 2013, the Senate passed a bill to avoid the fiscal cliff by a vote of 89 to 8.  This bill, titled the American Taxpayer Relief Act of 2012, then went before the House and was passed later that evening by a vote of 257 to 167.  The “compromise”…

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01.03 2013
Market Reaction

Market Reaction to Fiscal Cliff Deal

Markets rallied strongly on Wednesday in reaction to the last minute deal to avert the worst of the so-called fiscal cliff.  The Nasdaq rose 3% and the S&P 500 rose 2.5%.   As you can see on the chart below, the move takes the S&P 500 back near the September highs, which of course was before…

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12.13 2012

November 2012 Market Commentary

Economy The pace of positive economic data remained strong in early November but weakened toward month end. This was partially the result of Hurricane Sandy which hit the East Coast in late October/early November. The storm wreaked havoc on a number of economic data series and normal business activity,  including retail sales (contracted by 0.3%) and manufacturing…

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12.07 2012

2012 Year-End Planning Considerations

For 2013, January 1st is much more than the start of a new year.  The champagne and streamers are accompanied by many changes in tax provisions and the potential for automatic across-the-board spending cuts. For months we have been inundated with news about the ominous fiscal cliff.  We cannot turn on the television, open a…

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11.19 2012

Brief Market Thoughts – November 16, 2012

Since Election Day, the S&P 500 is off 5%, just a little market correction (so far).  Most attribute this decline to worries over the “fiscal cliff.”  If you listen to the media, you would think the market is down much more than 5%.  Below is a chart to point out the market reaction around the…

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11.14 2012

October 2012 Market Commentary

Economy The pace of positive economic momentum remained strong in October as a string of encouraging data points came in above consensus expectations. The September jobs report, released in early October, saw the unemployment rate fall dramatically from 8.1% to 7.8%. The nonfarm payroll survey reported a gain of 114,000 jobs.  This was the 24th…

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11.07 2012

Election Implications

Yesterday’s election resulted in no major change to the current leadership in Washington.  President Obama won with just over 50% of the vote, the slimmest margin ever for a re-election, but won a sizable 332 electoral votes (270 needed to win).  Democrats continue to control the Senate and are likely to expand their advantage to…

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10.22 2012

September Market Commentary

Economy The pace of negative economic data slowed in the third quarter, indicating that data levels for major economic reports remain on the weaker side but are beginning to post more in line with consensus expectations. Labor markets and the housing sector are two areas that continue to receive increasingly positive news.  Housing in particular…

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10.22 2012

James Shelton on Bloomberg Radio

On October 16, James Shelton appeared live on Bloomberg Radio to share his market outlook and investment insights.  James weighed in on earnings season thus far and urged investors to choose wisely as growth will be difficult to come by moving into 2013.  He explained that larger companies can produce a solid cash flow and recommended…

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09.19 2012

August 2012 Market Commentary

In August bad news for the economy was good news for equity markets as investors interpreted weak economic data points as a reassurance of more easing from global central banks. Equity markets were broadly positive while credit markets remained flat.  Volume was low as seasonality and directional uncertainty forced many investors to the sidelines.  The…

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