Tag Archives: Wall Street

Global Changes on the Horizon

The Economy: On the surface things appear to be moving along quite nicely with synchronized global growth still the order of the day. Beneath the surface, changes are coming. Trump has appointed Powell as the next Fed Chair. He’ll take the helm in February 2018 and may not be the same as the old boss. With his Wall Street background, he has a different perspective. Likewise Japan where the government pension system has been authorized to invest hundreds of billions in global stock markets. Saudi Arabia is undergoing change with historic upheaval in the royal family. While the House of Saud may reap a $800 billion windfall from wealth confiscations, the end result may be the unprecedented end of support for terrorism and a rapport with Israel. Brexit continues to muddle through with calls for the end of the world becoming more muted over time. Mankind is in holiday mode as year-end approaches.

Food for Thought: After a rip-snortin’ run, stocks have taken a breather lately. Anything less than daily triple-digit gains are seen by many investors as signs of doom. Whether recent market action is the pause that refreshes or something more significant is best addressed by Donald Rumsfeld’s famous quote: “There are known knowns. There are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know.” Markets will either go up, or they will go down, or they will go sideways. Have a great weekend.

Music of The Week: Tamba Trio “Pure Bossa Nova”

Consumer Confidence

The Economy: With the exception of consumer confidence, economic numbers have disappointed this week. Is this the pause that refreshes, or is it the beginning of the end, or is it the end of the beginning? You choose. We remain cautious. It’s important to understand that financial markets have been disconnected from the economy for a while now. Your organization or business may be doing better or worse than the numbers spewing out of Wall Street and Washington. Global trade appears to be slowing as China’s economy decelerates. The energy sector is sluggish. Mining and raw materials have hit a speed bump. Fortress America has remained largely untouched by these developments. The consumer confidence numbers tell us that Americans are happy as clams. That’s good for business. Buy now; tell me how.

Food for Thought: The third quarter is history … and never too soon. After 4-years of unbridled euphoria stocks took a beating in August and September. Markets are down about 11% from their highs; 8% in the past 2-months. While we still see this as a healthy correction, we encourage you to have an exit strategy. The “I’m ready to bail at any moment” crowd is out in force. Hope is not a strategy and planning to hold losing positons through a major downturn is a recipe for disaster. Murphy’s Law is alive and well. Letting the market turn your 401k into a 101k is not sound financial planning. Contact us if you’d like help.  We Quarterback Money®.