Why Is Inflation So Important?

David B. Armstrong, CFA Weekly Market Commentary

There is the inflation that everyone talks about on TV and in financial reports: CPI, Core CPI, Producer Price Index…blah blah blah.  These reports are important, but I don’t think they are as important to you, the investor, as you may think.  Especially if you are a high-net-worth investor. Why? Because of what those indices measure. The CPI, for example, …

Which Is Worse

Which is Worse?

David B. Armstrong, CFA Weekly Market Commentary

All weekend long I saw a lot of news that basically boiled down to one question – which is worse, a yield curve that is flattening or bond yields that are going up? When the Fed raises interest rates (by raising the federal funds rate), they are signaling that they have faith in the economy. They are also giving themselves …

The Market

Oil, Oil, Everywhere

David B. Armstrong, CFA Weekly Market Commentary

Global equity markets ended the week with big losses. The S&P 500, German DAX, and Japan TOPIX were -3.7%, -3.8%, and -1.5%, respectively.   Commodity prices hit a 16-year low, which weighed on stocks. I discuss oil in greater detail below, however, markets are now anticipating the Federal Reserve’s interest rate policy decision on December 16th.  An interest rate increase is …

Trump vs Bush Interest Rates

Debates & Rates

David B. Armstrong, CFA Weekly Market Commentary

For the week, U.S. stocks were pretty much flat as the Federal Reserve (Fed) left interest rates unchanged.  This prompted some rather mixed emotions… On one hand, the Fed’s low interest rates that have been in place since the financial crisis and have supported equities remain. On the other hand, the Fed expressed concern about the global economy (China, emerging …

Interest Rates

The Fed

David B. Armstrong, CFA Weekly Market Commentary

This week it’s all about the Federal Reserve.  Their two-day meeting will finish up on Thursday and it is the first meeting in almost a decade that could bring about a hike in the fed funds rate. How Fed Chief Janet Yellen frames the decision may be just as significant, if not more significant, than what the Fed finally decides. …