North Star Financial Services

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So far North Star Financial Services has created 10 blog entries.

Goldilocks and the 74 Hot Dogs

Last Week: Goldilocks is still alive and well, as evidenced by the Bureau of Labor Statistics initial report on the labor situation in June, which was neither too hot nor too cold. While the unemployment rate increased slightly from 3.8% to 4.0%, the entire increase was due to an estimated approximately 600,000 people entering the workforce in search of work; such an estimated increase typically is taken as a sign of [...]

2018-07-09T10:08:46+00:00July 9th, 2018|

TINA has Left The House

Last Week: “TINA”, which stands for there is no alternative (to equities), has been the battle cry for the bulls during this nine- plus year rally in the market. The gamble by the Federal Reserve that pushing short-term risk-free interest rates down to zero percent would stimulate investment in riskier assets paid off handsomely. Most of the money flowed into the S&P 500, being the most liquid equity basket, which helped [...]

2018-07-02T10:24:26+00:00July 2nd, 2018|

Still Resilient and Rotating

Last Week: Resilient? But wait, you might be thinking, didn’t the market decline last week? Indeed, the S&P 500 did lose 0.89% and the DJIA 2.72%, while the Russell 2000 managed to post a fractional gain.  Given the escalation in trade tensions, I think those results show tremendous resiliency. By way of comparison, the Shanghai Composite Index fell 4.4% for the week, and is now down 13% this year. Rather than [...]

2018-06-25T14:15:31+00:00June 25th, 2018|

Resilient. Week 3

Last Week: Once upon a time, a long time ago, in February and March, the market declined, and volatility spiked over concerns of a trade war and tightening monetary policy. Last week Investors (traders?) displayed tremendous resilience to those concerns. On the heels of the previous weekend’s disastrous G-7 summit, which threatened the NAFTA talks, on Friday the U.S. imposed tariffs on $50 billion of goods from China, which immediately said [...]

2018-06-18T09:19:58+00:00June 18th, 2018|

Resilient. Week 2

Last Week: Once again, the market proved resilient, with the S&P 500 gaining 1.6%, despite numerous troubling global headlines.  Most of the unsettling news relates to trade issues, which clearly could become significant impediments to the global economy if the proposed tariffs become reality. The market seems to be viewing the slew of trade policy tweets as negotiating ploys or bluffs, rather than actual policy statements. I hope that proves to [...]

2018-06-11T10:10:25+00:00June 11th, 2018|

Resilient

Last Week: Definition of Resilient from Merriam-Webster: a: capable of withstanding shock without permanent deformation or rupture. b: tending to recover from or adjust easily to misfortune or change. I’m not so sure about “misfortune”, but there has certainly been and endless flow of “shock” and “change” in the world, and like the Energizer bunny, the S&P 500 keeps on ticking. Or was it Timex, that takes a licking and keeps [...]

2018-06-04T08:30:08+00:00June 4th, 2018|

Winners and Losers

Last Week: Enthusiasm over progress on trade negotiations early in the week, gave way to concerns over a myriad of geopolitical concerns (Turkey, Italy, Iran, Spain, Venezuela, Brazil, North Korea), leaving the equity markets fractionally higher by the close on Friday. Crude prices declined almost 5%, after producers said they’re looking to boost output as the global glut seems to have been cleared and prices have rebounded. Shares of Energy companies [...]

2018-05-29T09:24:45+00:00May 29th, 2018|

3% and No Panic

Last Week: The Ten-Year Treasury yield moved comfortably over 3%, rising 10 basis points to levels not seen since 2011, without any reaction from the stock market, as the S&P 500 declined a modest 0.54%. Smaller stocks continued their recent outperformance, with the Russell 2000 gaining 1.23% to a new all-time high. It’s not clear whether progress is being made on the trade issues, but the recent interpretation of the tea [...]

2018-05-21T09:12:54+00:00May 21st, 2018|

TIDE Rolls In

Last Week: Following up on the theme from our last blog, the TIDE rolled in for four of the five trading days, and the S&P 500 finishing 2.4% higher. On the positive side, the trade talks moved towards deal making, as speculation grew that the Chinese are prepared to commit to import more U.S. goods. Additionally, the inflation numbers came in slightly below consensus, although raw materials, labor costs, and transportation [...]

2018-05-14T15:56:08+00:00May 14th, 2018|

High Water Mark

Last Week: Tuesday was a tough day, with the S&P 500 sliding 1.3% and the yield on the Ten-Year Treasury topping 3% inter-day. The rest of the week, the stock market made up those losses to finish unchanged, and the Ten-Year Treasury also finished where it started, at 2.95%. Earnings reports continued to exceed expectations, with the composite growth rate for the quarter now at 23.2%, and with all eleven sectors [...]

2018-05-09T13:36:18+00:00May 1st, 2018|