Market Commentary

Financial Literacy Test

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There has been survey after survey that show that Americans fail financial literacy tests. One area that needs improvement is the types of retirement savings vehicles available to individuals:   Traditional IRA – This could also be called a Rollover IRA or Individual IRA. The money you invest is before income taxes. As the name […]

Market Commentary

New Home Sales

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For January, sales of new homes fell hard down 7.8% from December and were 1% lower than a year ago. Prices were stable, and inventory reached 6 months’ supply, a far greater number then the 3 month supply for existing homes.   No one thinks this is a bad omen for housing as weather and […]

Market Commentary

How Does the Government Count Inflation?

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For consumers the CPI (Consumer Price Index) comes out every month and it measures the rate of increase of certain products. The government also measures inflation at the producer level known as the PPI. For CPI there is a basket of goods and services they price which includes food, gas, energy, utilities, clothes, automobiles, other […]

Market Commentary

Mortgage Rates

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The rate on a 30 year fixed mortgage, the most common length of a mortgage, rose to 4.32% this week which is a 4 year high. This was not due to the recent FED hike, even though it does influence other rates, the FED can only raise the rate they charge for other banks to […]

Market Commentary

Inflation

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U.S. consumer prices rose .5% in January, the biggest monthly increase since 2012, and core consumer inflation rose. 3%. That was higher than expected and certainly puts the FED on course to raise interest rates in March. If this continues, it also may mean a stronger indication of continued increases for the rest of the […]

Market Commentary

Trade Deficit

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Recently it was reported that the U.S. trade deficit rose to the highest level in 9 years. Is that a bad thing? Most would say yes and for very valid reasons. It means we are importing more goods and/or services than we are exporting. Most of that is comprised of goods that American’s buy because […]

Market Commentary

Jobs/Inflation

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Every month we get the jobs report and this morning’s was pretty good. The Labor Department reported 200,000 new jobs were produced in January. That was a bit more than expected but what was a surprise was that wage growth increased at an annual rate of 2.9%, the fastest pace in more than eight years. […]

Market Commentary

Existing Home Sales

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A report comes out each month outlining the sales of homes that already exist. The number fell sharply for December. Normally that might be bad news but not in this case. The problem is a lack of inventory which has been ongoing for 31 months in a row. Supple of homes dropped 11.4% in December […]

Market Commentary

Are We in a Euphoria Stock Market?

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The question is raised because once Euphoria sets in with stock market investors the end of the market is nigh. John Templeton a long time legend in investing, has described the four phases of investing in 1994. He said “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” […]

Market Commentary

Cryptocurrency Crash

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Everyone is talking about the new way to do business with cryptocurrency. Even the average person on the street has heard about it and is wondering how they can make money, at the same time not having a clue as to how it works. That is a clear sign of a bubble and we are […]