Week 44 of 2019, There’s Still Steam

[Tam thom 3] - week 44 of 2019

U.S. stocks climbed to fresh record highs after the October jobs report showed that the economy added more jobs than expected. The Federal Reserve cut interest rates for the third time this year and signaled a pause in lowering rates to assess economic conditions. While economic growth has slowed, as the third-quarter GDP estimate showed last week (from 2.0% to 1.9%), several risks have lessened since the Fed first lowered interest rates in July, namely the de-escalation of U.S./China trade tensions, uncertainty on the Brexit front, and weakness in manufacturing that appears contained. In our view, the U.S. economy remains on solid footing, supported by a strong labor market, still-rising corporate earnings, and low interest rates

Week 40 of 2019 : Unemployment reached a 50-year low

[Tam thom 3] - week 40 of 2019

The US economy created 136,000 in September, a bit short of the 145,000 jobs expected by the markets. Over the course of 2019, the economy has produced an average of 160,000 jobs a month, compared with 223,000 last year. Revisions over the past two months added 45,000 jobs and pushed down the overall unemployment rate to 3.5% from 3.7%, the lowest level in 50 years.

Week 39 of 2019 : Keeping Politics Out Of Your Portfolio

[Tam thom 3] - week 39 of 2019

While politics grab headlines ultimately, it’s economics and earnings that drive long-term portfolio returns. While we expect political uncertainty to continue as we approach the 2020 presidential election, it’s important to note that, historically, markets have returned 10% on average regardless of which party controlled the White House or Congress

Week 38 of 2019 : Cut Rates

[Tam thom 3] - week 38 of 2019

Does administering medicine to a healthy person prevent them from getting sick? This is the question facing the market. The Fed cut interest rates last week for the second time this year – monetary medicine aimed at prolonging the current economic expansion. Meanwhile, the patient isn’t exactly in dire need of treatment, with the U.S. economy exhibiting a reasonably clean bill of health, underpinned by a strong consumer.