Wealth Reports
Scannell Wealth Report, January 30, 2012
At its most basic level, a trade takes place when a buyer is willing to buy at a certain price and a seller is willing to sell at that price. Both parties could be smart, experienced, and looking at the same data, yet somehow one party thinks it's a good price to buy and the other thinks it's a good price to sell.
Scannell Wealth Report, December 12, 2011
What's more important to the U.S. stock market, economic growth or the value
of the U.S. dollar? On the surface, economic growth would seem to be the
logical answer since as the economy grows, earnings should grow, too. But,
digging a little deeper, the answer is not so clear cut.
Scannell Wealth Report, October 31, 2011
After 14 summits in 21 months, have European leaders finally solved their sovereign debt problem? Judging by the stock market's reaction, you might think the answer is yes..
Scannell Wealth Report, July 18, 2011
"Will they or won't they? Republicans and Democrats are squabbling over raising the federal debt ceiling and jeopardizing a projected August 2 "drop-dead" date for avoiding a default on part of our outstanding debt obligations."
Scannell Wealth Report, July 11, 2011
"This is a big bucket of very cold water." That was how Ian Shepherdson, chief U.S. economist at High Frequency Economics, described last week's ugly U.S. employment report.
Scannell Wealth Report, July 5, 2011
επεκταθείτε και προσποιηθείτε
If that looks like Greek to you, that’s because, well, it is. It’s Greek for “extend and pretend” and that’s what happened last week to Greece’s debt problem."
Scannell Wealth Report, June 20, 2011
Like a computer owner who successfully reboots after experiencing a blue screen, investors heaved a sigh of relief on Friday as the Dow Jones Industrials and Standard & Poor’s 500 Indices eked out gains for the week ending six straight weeks of losses.
Scannell Wealth Report, June 6, 2011
Well, it wasn't exactly the best week for the U.S. economy and financial markets. Here are a few "bumps on the road to recovery" we learned last week.
Scannell Wealth Report, May 31, 2011
Starting in July, it may cost you more to wake up in the morning. Starbucks announced last week that it was raising the price of bagged coffee sold in its cafes by an average of 17%.
Scannell Wealth Report, May 23, 2011
Last week, we witnessed a late 1990s "déjà vu moment" with the IPO of LinkedIn, one of a new crop of social-media companies like Facebook, Groupon, and Twitter that are generating excitement among the investing public, according to MarketWatch and Barron's.
Scannell Wealth Report, May 16, 2011
Normally, people like a bargain. When we go shopping, we feel much better buying things when they’re 20% off or “Buy one, get the second at half price.” But, there are two things that tend to buck this trend of buying when the price goes down. If fact, with these two things, people tend to buy more of them after their price has run up. Do you have your guess on what they are?
Scannell Wealth Report, May 9, 2011
We know the law of gravity applies to the natural world and last week we were reminded that it also applies to the “artificial” world we call Wall Street.
Scannell Wealth Report, May 2, 2011
When Fed Chairman Ben Bernanke speaks, people listen. The normally secretive Federal Reserve held its first-ever news conference last week and what Bernanke said turned out to be music to the market's ears.
Scannell Wealth Report, April 18, 2011
While the high unemployment rate is still a concern, the country seems to be shifting its focus to two issues -- the budget deficit and inflation. Almost everybody seems to agree that we've got to get the budget under control, but, not surprisingly, the Democrats and Republicans have two very different ideas on how to make that happen.
Scannell Wealth Report, April 11, 2011
The dollar is becoming a pariah and weakening against nearly all global currencies because our relatively slow economic recovery means the Federal Reserve is unlikely to raise interest rates in coming months, according to The Wall Street Journal.
Scannell Wealth Report, April 4, 2011
It may not have felt like it, but the stock market, as measured by the S&P 500, rose 5.4% during the quarter. Despite some trying moments, the market rose "amid growing optimism that the recovery from the financial crisis had become self-sustaining", according to The Wall Street Journal.
Scannell Wealth Report, March 21, 2011
The enormity of the unfolding tragedy in Japan has saddened the world. We have never seen a triple tragedy like this with an earthquake, a tsunami, and a nuclear disaster all hitting one country at the same time. Like many others, we are hoping and praying for the Japanese people that their situation will improve soon.
Scannell Wealth Report, March 14, 2011
"It takes a licking and keeps on ticking" was a memorable jingle for Timex watches and it seems like an apt description of the U.S. financial markets, too.
Scannell Wealth Report, February 28, 2011
Guns and oil are never a good combination. As unrest in the Middle East continued last week, oil prices headed north and stock prices headed south. The decline in stocks last week was rather modest, but it still shows how oil is an important component of our economy.
Scannell Wealth Report, February 22, 2011
The Middle East isn't the only place experiencing a protest by the people. In Madison, Wisconsin, thousands of protesters flooded the state capital for several days last week to protest the newly-elected Republican governor's attempt to roll back state employee benefits and overhaul union rules, according to CNN.
Scannell Wealth Report, Februry 7, 2011
"Dr. Copper" has been making a bold statement. Since copper is used in so many industrial applications and is economically sensitive, investors often refer to it as, "Dr. Copper."
Scannell Wealth Report, January 31, 2011
What recession? That's not meant as an insensitive remark to the millions of Americans who are still struggling and unemployed, rather, it's meant to highlight the uneven nature of this recovery.
Scannell Wealth Report, January 18, 2011
What do the Wonders of the Ancient World, the chakras, the days of the week, the Habits of Highly Effective People, the Deadly Sins, the Seas, and the S&P 500 all have in common?
Scannell Wealth Report, January 10, 2011
2010 is now history and it caps a wild three-year ride in the financial markets. We ended 2007 near all-time record highs in the U.S. stock market, but then the wheels fell off.
Scannell Wealth Report, December 20, 2010
Officially, the government says inflation is under control as overall consumer prices have risen just 1.1% over the past 12 months, according to the Labor Department. However, the way the government measures inflation may not be indicative of what’s really happening where it matters the most -- your daily habits.
Scannell Wealth Report, December 13, 2010
Let's make a deal. That's what President Obama did last week with the Republicans and the financial ramifications of the broad tax package are already starting to ripple through the financial markets.
Scannell Wealth Report, December 6, 2010
How risky are the financial markets right now? Without a crystal ball we won't know the answer until after the fact, but that doesn't stop Wall Street from finding creative ways to measure and profit from investors' desire to predict and avoid risk.
Scannell Wealth Report, November 22, 2010
Among the many economic differences between China and the United States, one of the most glaring is that China is trying to slow down its inflation rate, while the United States is trying to ignite it.
Scannell Wealth Report, November 8, 2010
The potential economic ramifications of last week's news are, to put it mildly -- huge. Three big things happened that could have long-term effects on your portfolio and your financial well-being.
Scannell Wealth Report, October 11, 2010
Since the financial crisis began in 2008, the Federal Reserve and other branches of government have engaged in creative and somewhat unorthodox ways to try and shock the economy back to good health.
Scannell Wealth Report, September 27, 2010
Is inflation good or bad for our economy? After last week, we now know the Federal Reserve's answer to that question and it may have a major effect on the financial markets going forward.
Scannell Wealth Report, September 13, 2010
If you had an extra $1,000, would you use it to reduce debt or would you spend it on something discretionary? How Americans answer that question may significantly impact economic growth over the next few years, according to an August 20 report from Federated Investors.
Scannell Wealth Report, September 7, 2010
Today, with an interconnected world filled with impatient "fast traders" and economic uncertainty, there seems to be a fixation on the latest data released by Washington or some other business group that has its pulse on a sector of the economy.
Scannell Wealth Report, August 30, 2010
As the developed world tries to pare its debt through austerity programs, sluggish growth may result. World leaders are banking on emerging countries like China to help pickup the economic slack.
Scannell Wealth Report, August 23, 2010
As the world's largest economy, there's an old saying that when our economy sneezes, the world catches a cold. Well, we've certainly done more than sneeze in the past three years.
Scannell Wealth Report, August 16, 2010
Investor's lack of conviction was on full display last week as a scandal at Hewlett Packard, a change of heart from the Fed, and an unexpected rise in weekly jobless claims led to a decline in global stock markets, according to Bloomberg.
Scannell Wealth Report, August 9, 2010
The future could be more volatile due to such things as the unpredictable nature of government regulation and bailouts, sovereign debt levels, high-frequency trading, geopolitical flare-ups, social unrest, high unemployment, and medical or scientific breakthroughs.
Scannell Wealth Report, August 2, 2010
Higher savings is a double-edged sword. On the positive side, it means consumers are acting more responsibly and, by beefing up savings, they are setting the stage for future sustainable economic growth. The downside to this thriftiness is slower economic growth in the short term.
Scannell Wealth Report, July 26, 2010
There are reasons why the markets and the economy could do okay in the months to come. But, in this "unusually uncertain" time, it still makes sense to be "on guard."
Scannell Wealth Report, July 12, 2010
It's good to know what market observers are ascribing to the market's weekly moves, but as financial advisors, we have to filter their tidy explanations with a dose of skepticism.
Scannell Wealth Report, July 6, 2010
The recovery from the recession hit a rough patch in the second quarter as several economic indicators turned soft and the stock market turned south. It's too soon to tell if this is the start of a new leg down or simply a pause that refreshes.
Scannell Wealth Report, June 21, 2010
The up-down EKG between the bulls and the bears has, like the U.S. versus Slovenia in the World Cup, ended in a draw. However, unlike the U.S. versus Slovenia, we still have six months left in this year to see who wins the yearly "Investment Cup."
Scannell Wealth Report, June 7, 2010
When training for athletic events coaches are fond of saying, "No pain, no gain." Likewise, investors should expect to endure the "pain" of market declines in order to benefit from the "gain" of bull markets. But, in order to withstand these market declines, it's helpful to know how much pain is "normal"...
Scannell Wealth Report, May 24, 2010
It seems like the market is always either in a crisis, recovering from a crisis, or anticipating the next crisis. But, guess what? Despite these market crises, the DJIA rose from 800 at the beginning of 1970 to 10,193 at the end of last week, according to Yahoo! Finance. That's nearly a 13-fold increase...
Scannell Wealth Report, May 17, 2010
"Hot Potato" is a favorite children's game. Unfortunately, as adults, we're playing an economic version that has the potential for much more serious consequences...
Scannell Wealth Report, May 10, 2010
With the events of last week, world financial markets declared loud and clear that government debt levels in certain countries are unsustainable and have to be dealt with right now. The good news is that the U.S. is not the epicenter of this latest problem. That coupled with an improving economy, may help the U.S. avoid the brunt of the pain...
Scannell Wealth Report, April 26, 2010
Even though the U.S. unemployment rate is high, overall world wealth in the form of equity investments is in decent shape and the trend over the past year has been up. This "equity wealth" is helping support worldwide economic activity...
Scannell Wealth Report, April 12, 2010
The U.S. stock market continued grinding its way higher last week as the DJIA briefly pierced the 11,000 level for the first time since September 2008, according to The Wall Street Journal. Back then, the Dow was piercing 11,000 on its way down to below 7,000 in March 2009. This time, it's on its way up from the March 2009 low. Same number, but clearly a much different feel...
Scannell Wealth Report, April 5, 2010
The 1st Quarter in Review...Stock Market Rally Continued...Interest Rates Were Stable...The Dollar Rose Against The Euro...Double Dip Recession Looking Less Likely...
Scannell Wealth Report, March 22, 2010
It's easy to say that the stock market is nothing more than a "casino" this is driven by "speculators", but over the long term, earnings do drive stock prices. So, how do corporate earnings look these days? Actually, pretty good...
Scannell Wealth Report, March 15, 2010
The Harder They Fall, the higher they rise. Would it surprise you to know that the worst stocks during the bear market that ran from October 9, 2007 to March 9, 2009 turned out to be - by far - the best performing stocks over the next 12 months?...
Scannell Wealth Report, March 8, 2010
Highly Volatile Markets can be great teachers and the last few years offered a great learning environment for those willing to pay attention. Here are a few thoughts to ponder...
Scannell Wealth Report, March 1, 2010
Three months ago, on December 1, 2009, the S&P 500 closed at 1,108. Last week it closed at 1,104. After three months, the net movement in the stock market was just 4 points. What does that tell us about investing?....
Scannell Wealth Report, February 22, 2010
The U.S. stock market has had several "mini corrections" since the March 9, 2009 low and last week's strong performance has some analysts saying the recent 9% drop in the S&P 500 from its mid-January high may have run its course, according to the Associated Press...
Scannell Wealth Report, February 16, 2010
The Reuters University of Michigan consumer sentiment preliminary index showed that consumer confidence was down slightly from January ... However, a 2002 study by Meir Statman and Kenneth Fisher found that, "Low consumer confidence is followed by high stock returns more often than it is followed by low stock returns..."
Scannell Wealth Report, February 8, 2010
A mixed employment report for January; continued budget deficit issues in Europe; monetary tightening in China; and a growing sense that the worldwide economy might be running on government stimulus fumes all contributed to worldwide jitters during the past few weeks. However, an increase in investor anxiety helped send the value of the U.S. dollar up, up and away...
Scannell Wealth Report, February 1, 2010
Let's recap some of the good news last week ...
The Commerce Department said the economy grew in the fourth quarter at its fastest pace in more than six years ... Sounds pretty good, doesn't it? So, how does the market respond? ...
Scannell Wealth Report, January 25, 2010
After the dramatic bull run over the last 10 months, it wouldn't be surprising to see a correction in the markets. This correction could be caused by a wide variety of reasons, but here are three broad categories that bear watching, according to the January 23, 2010 New York Times article...
Scannell Wealth Report, January 19, 2010
Back in early March 2009, there was a palpable fear in the markets. Our banking system was on the verge of collapse, unemployment was skyrocketing, and the stock market was touching 12-year lows. But on March 10, the collective psychology changed, the market turned around, and since then we've witnessed one of the greatest short-term bull markets in history....
Scannell Wealth Report, January 11, 2010
The S&P 500 index rose every day last week and finished with a 2.7% gain. This gain came despite a disappointing jobs report, which showed another 85,000 jobs were lost in December.
Scannell Wealth Report, December 21, 2009
Major fluctuations in the stock market tend to grab the headlines, but there's something else investors should keep their eye on too - the value of the U.S. dollar...
Scannell Wealth Report, December 14, 2009
As it relates to predicting holiday sales, it turns out that, 'Christmas tree sales can be a good gauge of the strength of the holiday-shopping season,' according to The Wall Street Journal...
Scannell Wealth Report, November 17, 2009
Can Sir Isaac Newton's first law of motion help explain the continuing surge in the stock market? Well, some unknown "external force" compelled the stock market to change its downward spiral in early March and since then, it's been up, up, and away...
Scannell Wealth Report, November 9, 2009
"There is a fine line between having the conviction to stick to an investment position that is temporarily going against you versus being flexible enough to change your mind as the situation changes. Knowing how to discern that line is an important part of successful investing."
"Before you make an investment, here are three things you should know:..."
Scannell Wealth Report, November 2, 2009
Proponents of stimulus spending say it's doing exactly what it should do - it's helping the economy grow. Critics say we're just delaying another inevitable deep economic adjustment and it's better to take our medicine now than suffer death by a thousand cuts. Have we solved the problems in our economy or just postponed them?...
Scannell Wealth Report, October 26, 2009
We are about one-third of the way into the quaterly earnings season and a remarkable 78% of the S&P 500 companies have delivered a positive earnings surprise...
Scannell Wealth Report, October 19, 2009
The DJIA rose above 10,000 last week. The first time it rose above 10,000 was in March 1999. A lot has changed in those ten years. Let's look at a few differences between 1999 and today...
Scannell Wealth Report, October 12, 2009
Gold prices hit an all-time high last week driven by a weak dollar and concerns over potential inflationary pressure, according to CNBC. Many people consider gold to be a good inflation hedge. Is it true? Let's look at some examples...
Scannell Wealth Report, October 5, 2009
As we enter the home stretch for 2009, let's review what transpired in the financial markets over the past three months...Stock Market Rally Continued...Interest Rates Dropped...Value Of The Dollar Declined...
Scannell Wealth Report, September 28, 2009
Since we humans are, well, human, then the markets may behave in a way that reflects human behavior and that can get quite messy.
Knowing this helps us remain aware and on guard for extreme movements in the markets.
We can't guarantee that we'll always be on the "right" side of extreme market movements, but you can be confident that we will sure try...
Scannell Wealth Report, September 21, 2009
We will need the benefit of history to know if last week's piercing of 20% above the 200-day moving average foreshadows a new, long-term secular bull market. However, we have enough history to know the current rally is very impressive indeed.
Scannell Wealth Report, September 14, 2009
Who's right, stock market investors or bond investors?
The 10-year Treasury dipped back down last week from its June high of nearly 4.0% Is the bond market now foreshadowing another flight to safety? Or is it suggesting that the Goldilicks economy is back and economic activity is "just right?"
Scannell Wealth Report, September 8, 2009
Ten years ago, a Big Mac cost $2.43, according to the Economist. Today, it costs $3.57. That's a 47% increase. Do you think the taste of a Big Mac improved by that much over the past decade? If so, then maybe this wasn't a lost decade after all.
Scannell Wealth Report, August 31, 2009
As much as we would like to dust off our crystal ball and peer into it for prescience, we know that predicting the future is not an effective investment strategy. However, thinking about possible scenarios, developing plans and being ready to adjust course as situations unfold is appropriate.
Scannell Wealth Report, August 24, 2009
Despite the mixed real estate news, the market viewed it as positive and a strong rally last Friday sent the S&P 500 index to a new 2009 high.
If the real estate market continues to improve and home prices start to rise, that could help support an even healthier stock market down the road...
Scannell Wealth Report, August 10, 2009
The economy is showing signs of revival. However, in order for this to continue, consumers need to start spending.
Responsible spending versus reckless spending will be key for favorable stock prices and for the future of our country...
Scannell Wealth Report, August 3, 2009
For the five months ending last Friday, the S&P 500 had its best performance streak since The Great Depression year of 1938, according to Reuters.
However, some factors including insider trading suggest that corporate insiders are less sanguine about the future of this rally.
Only time will tell if it continues into the fall or rolls over into a new leg down. Either way, we're doing our best to help you preserve capital and generate profits as appropriate...
Scannell Wealth Report, July 27, 2009
As of last week, the bulls were stampeding over the bears. Of course, that could change in an instant.
Whether you are bullish or bearish, there's plenty of ammo in each camp to support your view...
Scannell Wealth Report, July 20, 2009
The second quarter earnings season started just like the Fourth of July - with a bang.
Going forward investors will keep a close eye on the rest of the earnings reports looking for any sign that profits are being generated by revenue growth instead of relying on cost cutting. As you know, you can't cost cut your way to 15% profit growth each year, so, eventually, we'll need to see solid revenue growth before investors will feel confident that we're out of the woods...
Scannell Wealth Report, July 13, 2009
At SWMG, we can say with some confidence that the economic recovery will likely be inconsistent. One day we may receive data that says the economy looks great, the next day another report might show just the opposite.
This tug-of-war between conflicting data will test the patience of investors and we will do our best to pass that test with an A+...
Scannell Wealth Report, July 6, 2009
Now that we've passed the halfway mark in 2009, let's review what transpired in the financial markets...Stock Markets Soar...Credit Markets Diverged...Commodities Were Mixed...The Dollar Finally Cracked - A Bit...
Scannell Wealth Report, June 29, 2009
Faith that the economy will get significantly better in the near future will soon need to be replaced by the proof that it is getting better or else we may end up with more market volatility.
Scannell Wealth Report, June 22, 2009
Popular wisdom about life says, "It's the journey, not the destination." In successful long-term investing, it's just the opposite. The financial markets contain short-term traders and long-term traders.
Interestingly, traders and investors work synergistically in order to create opportunities for the other to make profits. Here's how...
Scannell Wealth Report, June 15, 2009
The stock market has been on a very nice run over the past three months and there's a divergence of opinion on what's behind it.
Most analysts seem to agree on one point - we're out of the "end of the financial system" doomsday scenario. That alone could be a major reason for the big jump in equity prices since the March 9 low. From there, opinions vary...
Scannell Wealth Report, June 8, 2009
On June 12, 2007, news broke that a 10-month old Bear Stearns hedge fund that speculated in mortgage-backed securities was melting down. The fund used leverage and bet heavily on bonds tied to subprime mortgages. As the market for subprime mortgages began to implode in early 2007, so did the Bear Stearns fund. This was the first major piece of information that all was not well in the land of finance. This week marks the two-year annniversary of the financial meltdown...
Scannell Wealth Report, June 1, 2009
How do you spell higher stock market prices?
J-O-B-S!
We all know that stock prices generally reflect the underlying growth of earnings, but companies cannot grow much unless consumers have jobs that allow them to spend money on stuff created and delivered by companies. So, how do we stand on the metric of job creation? Unfortunately, it's ugly...
Scannell Wealth Report, May 26, 2009
One key to an economic recovery is a thawing of the credit freeze. Let's look at three inicators that suggest we're making some progress in this area.
First, the LIBOR is coming down...
Second, the 3-month TED Spread is coming down too.
Third, junk bond yields have come down significantly in recent months...
Scannell Wealth Report, May 18, 2009
Warren Buffett has said his favorite holding period is forever. Does he follow his own advice? Buffett's Berkshire Hathaway recently posted its worst quarterly loss in more than 20 years and a big chunk of that was due to what Buffett called a "major mistake." Less than a year ago, with oil prices nearing their all-time high, Buffett dramatically upped his stake in oil giant ConocoPhillips and became its largest shareholder. Unfortunately, his timing was horrible. ConocoPhillips stock subsequently plunged along with the price of oil and as of last Friday, the stock was down about 50% from its high of last summer, according to Yahoo! Finance.
Scannell Wealth Report, May 11, 2009
Would you agree that the stock market has been volatile in the last six months?
As you may have guessed, that's a bit of a trick question. Most people would say that, yes, the stock market has been very volatile since early November 2008. For example, just from November 7, 2008 to November 20, 2008, the S&P 500 index dropped 19%. It then rallied 24% by January 6, 2009. But, that was just a tease...
Scannell Wealth Report, May 4, 2009
Set the bar low and then step over it. That idea helps explain why the S&P 500 index has jumped 30% since its March 9 low, according to Barron's Magazine.
By early March, investors were quite pessimistic about the outlook for corporate earnings and the economy. In effect, the bar was quite low in terms of near-term expectations. Over the following few weeks, earnings and economic reports came in weak, but they were "less bad" than expected. Relieved investors took this "less bad" as a sign that perhaps the worst is over so they started dipping their toes back in the investing waters and stocks rose...
Scannell Wealth Report, April 27, 2009
The government's ability to "stick the landing" will go a long way toward determining how well the economy - and, by extension, the stock market - will fare over the coming years.
If you're a fan of gymnastics, you're familiar with the concept of "sticking the landing." Whether it's coming off the vault, the beam, or the bars, gymnasts hope to make that picture perfect landing with a big smile and arms outstretched. Taking a step forward on the landing, a step backward, or, worse yet, falling on your you know what, leads to a dreaded deduction and a disappointing finish...
Scannell Wealth Report, April 20, 2009
"Time heals all wounds" is a well-meaning cliche and, with a little tweaking, it can apply to how you deal with losses in the financial markets.
This popular quote implies that the simple passage of time has a healing quality. In reality, the healing quality comes from what you do during the passage of time. Likewise, investors who have lost money in the financial markets may benefit from the passage of time if they follow a few simple ideas...
Scannell Wealth Report, April 13, 2009
Does August 12, 1982, mean anything to you?
On that day, the S&P 500 index closed at 102, which was about 9% lower than where it closed 10 years earlier, according to data from Yahoo! Finance. To repeat a popular phrase, it was a "lost decade." However, 10 years later, on August 12, 1992, it was a completely different story...
Scannell Wealth Report, March 30, 2009
Sometimes, less bad is actually good.
Investors are clinging to any signs of hope that the economy, if not actually turning the corner, at least has the corner in view now. A slew of economic reports released last week hinted at some possible good news...
Scannell Wealth Report, March 23, 2009
So now we know where money comes from.
The Federal Reserve elevated this financial crisis to an entirely new dimension last week by announcing several initiatives that would expand its balance sheet by more than $1 trillion. Effectively, they've decided to fire up the printing presses and create money where there once was none...
Scannell Wealth Report, March 16, 2009
It's about time.
Last week, the stock market, as measured by the S&P 500 index, staged its third-largest weekly gain since World War II, according to Reuters. The gain was partially attributed to the following good news...
Scannell Wealth Report, March 9, 2009
As it relates to the financial markets, essentially the only positive thing we can say about last week is that it ended.
The relentless decline in the stock market continued as investors focused on declining earnings, declining jobs, and lingering unhappiness with some of the administration's proposed economic plans. Talk of limiting some deductions for wealthy taxpayers and a cap-and-trade system on greenhouse gas emissions, in particular, seemed to spook investors...
Scannell Wealth Report, March 2, 2009
"History does not repeat itself exactly, but behavior does," according to legendary Wall Street veteran Bob Farrell. Institutional Investor magazine ranked Farrell the number one market analyst for 16 years.
Elaborating on Farrell's quote, the economy is going through another one of its periodic recessions, but this recession is not exactly the same as the last few...
Scannell Wealth Report, February 25, 2009
Despite the broad market averages approaching their recent bear market lows, there's some surprising strength below the surface.
Last Tuesday, the S&P 500 index closed within about 5% of its November 20, 2008, bear market low, according to data from Yahoo! Finance. Yet, according to data from Bespoke Investment Group, as of last Tuesday, the average stock in the S&P 500 was up about 14% from November 20, 2008...
Scannell Wealth Report, February 17, 2009
Thanks a trillion, Secretary Geithner.
After weeks of heightened anticipation, Treasury Secretary Tim Geithner unveiled the administration's comprehensive plan to restore confidence in the financial markets. Unfortunately, it landed with a big ol' thud...
Scannell Wealth Report, February 12, 2009
We've moved from "drill, baby, drill" to "spend, baby, spend."
As consumers have reduced their spending, the government is stepping in to fill the breach. The idea is that when the economy experiences one of its periodic contractions, it's the government's job to step up to the plate and become the spender of last resort...
Scannell Wealth Report, February 2, 2009
Our economy has moved from an inflationary environment to a deflationary environment in a remarkably short period. Is that good or bad?
Let's go back to July of last year...
Scannell Wealth Report, January 26, 2009
The government is furiously at work trying to find the right balance between managing the economy from Washington and letting capitalism run its course.
Most economists agree that government intervention to help stem the severe recession is a necessary evil. The big question is, "How much?"
Scannell Wealth Report, January 20, 2009
Despite another harrowing decline in the banking sector last week, the overall stock market has been holding up rather well, considering the circumstances.
Many analysts thought the worst of the banking crisis was behind us, but Citigroup and Bank of America reminded us last week that all is not well in the land of lending. Both firms reported earnings last week that were nothing short of ugly...
Scannell Wealth Report, January 12, 2009
While stock markets are down, there may be one market where you can actually make some money.
Collapsing real estate prices helped lead us into the current recession and the government realizes that stabilizing real estate prices may be one key to pulling us out of the recession. Accordingly, the government is doing what it can to influence mortgage rates and help them move lower...
Scannell Wealth Report, January 5, 2009
With 2008 in the history books, we'll use this week's commentary to review some of the key stories over the past year. As you well know, it was not one of the market's finest performances.