CONTACT   CLIENT PORTAL

FDP Wealth Management

Oct 28, 2016

FDP Market Quarterly Market Summary and Outlook

The third quarter began on a very uneven footing. The U.K. had just surprised investors by voting to leave the European Union (E.U.), and markets were in the process of digesting an enormous amount of uncertainty and repricing shares in the face of that uncertainty. However, hindsight has a way of offering clarity that’s dicult to grasp in the middle of the storm. While markets at home take their longer-term marching orders from profits and profit expectations, in the short-term any number of variables such as the surprise vote in the U.K. can influence sentiment. In reality, Brexit led to a two-day selloff in shares (St. Louis Fed Reserve). When cooler heads prevailed, the selloff was quickly followed by new highs for the S&P 500 Index (see Figure 1) and the Dow. In fact, the S&P 500, Dow Industrials and Nasdaq Composite all reached new all-time highs in August on the same day, the first such occurrence since December 31, 1999… READ ON

BACK TO PROSPERITY PARTNERS BLOG

Reproduction Prohibited without Express Permission. Copyright FDP Wealth Management. All rights reserved. Advisory Services offered through FDP Wealth Management, LLC, a state Registered Investment Advisor. Securities offered through Valmark Securities, Inc., Member FINRA/SIPC | 130 Springside Drive Suite 300 Akron, OH 44333-2431 | 800.765.5201. FDP Wealth Management, LLC is a separate entity from Valmark Securities, Inc. If you do not want to receive further editions of this weekly newsletter, please contact me at (949) 855-4337 or e-mail me at info@fdpwm.com or write me at 8841 Research Drive, Suite 100, Irvine, CA 92618. FDP Wealth Management, LLC, Valmark Securities, Inc. and their representatives do not offer tax or legal advice. You should consult your tax or legal professional regarding your individual circumstances. Indices are unmanaged and cannot be invested directly in. Past performance is not a guarantee of future results.

BACK TO BLOG

RELATED POSTS

Two Graphs and a Data Table

The labor market is moving back into balance. No longer do we come across articles touting the Great Resignation. In 2021 and 2022, it was ‘advantage employee.’ Employees still have some leverage, but the pendulum has gradually been swinging back to employers. Of course, this varies from industry to industry, but conditions are generally balanced.

READ MORE

Another Soft Inflation Number Bolsters the Case for Lower Rates

In 2021 and 2022, soaring inflation sparked the most aggressive series of rate hikes in decades. While prices remain high, the rate of those price increases has slowed, and the Federal Reserve may finally be seriously considering a reduction in interest rates.

READ MORE

At First Glance, Another Solid Jobs Report

The U.S. Bureau of Labor Statistics (BLS) reported that nonfarm payrolls rose a solid 206,000 in June, topping the consensus forecast offered by Bloomberg News of 190,000. However, first glances may not always leave the correct impression. Private sector payrolls increased by a more modest 136,000, and nonfarm payrolls were revised downward by 111,000 in April and May.

READ MORE

A Dysfunctional Housing Market

What happens when mortgage rates tumble below 3% and then spike above 7%? Unintended consequences are bound to play out. In hindsight, they aren’t difficult to spot. You’re a winner if you have no intention of moving and were lucky enough to lock in ultra-cheap rates just a few years ago. Those who want to move or renters who want to buy are less fortunate.

READ MORE

Mixed Signals

Much has been made of the remarkable resilience of the American economy. Forecasters who confidently called for a recession in 2023 got it wrong. So far this year, the economy is generating new jobs, and the U.S. economy has yet to falter.

READ MORE