The technology-laden Nasdaq composite is traditionally a volatile index compared to the S&P 500 Index. Only time will tell if the summer of 2004 will follow the same path.
The technology-laden Nasdaq composite is traditionally a volatile index compared to the S&P 500 Index. Only time will tell if the summer of 2004 will follow the same path.
Despite the surprisingly positive job growth numbers from the May 7, 2004 Labor Department report, this recession recovery, like the one following the 1990-1991 recession, still trails the typical job growth recovery demonstrated by all other post WWII recession recoveries.
The rise of the U.S. Dollar versus the Euro hurt returns while the loss versus the Japanese Yen helped performance. International investing continues to play an important diversification role in one’s portfolio.
MarketView Chart of the Week, posted April 30, 2004
Initial reports show that the Gross Domestic Product (GDP) expanded 4.2% in the first quarter 2004 but was below consensus estimates. Much of the growth was attributed to Federal defense spending (15.1%) and business equipment and software spending (11.5%). Sluggish sales of autos, decreased imports and weak state and local government spending held the growth to the unanticipated level. GDP measures the total production and consumption of goods and services in the U.S.
MarketView Chart of the Week, posted April 23, 2004
Subtracting dividend yields from bond interest offers the yield spread, a measurement of how much additional stock return is necessary to equal bond returns. Low spreads indicate stocks are attractive; high spreads indicate that stocks must have higher capital gains to equal bond returns.
MarketView Chart of the Week, posted April 16, 2004
The national average price of gasoline has been rising steadily for months and causing concern for consumers. Analysts believe that these prices are here to stay for awhile, especially with the peak summer travel season right around the corner.
MarketView Chart of the Week, posted March 26, 2004
The yield on the 10 year Treasury Note has dropped almost 3% over the last 3 years. In the last 18 months it has traded in a range between 3.4% and 4.4%, averaging 4%. Last year the rate jumped 1% from May to August as market participants became bullish on the economy and thought the Fed would have to raise rates soon. However, since then yields have dropped 0.75% because of continued low inflation, weak job creation and geopolitical fears.
MarketView Chart of the Week, posted March 19, 2004
The Consumer Price Index (CPI), which measures the average change in prices paid by urban consumers for a fixed basket of goods and services, rose slightly in February. Overall, prices are 1.7% higher than a year ago.
MarketView Chart of the Week, posted March 5, 2004
The present rally in U.S. equity markets has coincided with a general weakness in the dollar versus other foreign currencies. The depreciation in the strength of the dollar is helpful for U.S. businesses in two ways.
MarketView Chart of the Week, posted February 27, 2004
Investors who would have held the stocks in the S&P 500 Index for one-year periods may have received returns ranging from a 54% gain to a 43% loss. But those who would have held those same stocks for twenty years might have received as much as 18% per year and never less than 3%
MarketView Chart of the Week, posted February 20, 2004
One of the great debates of investing is whether to invest in cash, bonds or stocks. The answer to that question often lies in the amount of time the money will be invested and/or the investor’s risk appetite.
MarketView Chart of the Week, posted February 6, 2004
Over the past two years, value and growth stocks have experienced returns in a tight range with one not strongly outperforming the other. The convergence of returns between value and growth shows that both styles of stocks are benefiting from the present recovery.
MarketView Chart of the Week, posted February 13, 2004
The dramatic rise in equity stock prices over the past year has not affected all stocks equally. Riskier smaller company stocks, those with market capitalizations of $2 billion and under, have exceeded the returns of their larger counterparts.
MarketView Chart of the Week, posted January 30, 2004
The past year turned that around with the S&P 500 outperforming both U.S. intermediate and long-term government bonds. With the shift between equity and fixed income performance, it may be a good time to review your asset allocation in your retirement portfolio.
MarketView Chart of the Week, posted January 23, 2004
The Lehman Aggregate Bond Index, the industry accepted bond fund index, was up for the fourth quarter of 2003, despite the fact that normally as interest rates rise, bond prices fall. The reason for positive bond market return despite rising rates can be explained by evaluating the sectors that make up the index.