AMJ Financial Blog

Category: Market Commentary

Market Commentary – Dec. 4, 2017

What will it take to shake investors’ confidence? From the perspective of unsettling events, last week was jam-packed. North Korea claimed to have the capability to strike the United States with a nuclear missile, tax reform continued to travel a controversial path through the House and Senate, and former national security adviser Michael Flynn pled… Read More

Market Commentary – November 28, 2017

There was a lot to be thankful for last week. Stock markets around the world may have ripened to full-slip sweetness this year. Emerging markets have delivered the most attractive returns year-to-date. The MSCI Emerging Markets Index was up 34 percent year-to-date, last week. The United States and Europe have marched higher, too. The Standard… Read More

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Market Commentary – Nov. 20, 2017

Are investors more like tigers or African wild dogs? It appears investors – retail and institutional – have become rather like predators. They patiently stalk shares, waiting for a dip, and then they strike – buying stocks when prices fall. Consider last week. Barron’s described it like this: “The Dow traded down nearly 80 points… Read More

Market Commentary – November 13, 2017

Selling it overseas. Most of the companies in the Standard & Poor’s 500 (S&P 500) Index have reported third quarter earnings per share (EPS), which is the profit earned per share of stock outstanding during the period. Many have done quite well. With more than 90 percent of companies reporting, the total EPS growth rate… Read More

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Market Commentary – November 6, 2017

“Taxes are what we pay for a civilized society.” U.S. Supreme Court Justice Oliver Wendell Holmes’s statement is engraved on the front of the Internal Revenue Service building in Washington, D.C. Some people agree with the sentiment. Others believe it to be a logical fallacy. It’s likely the tax plan proposed by House Republicans last… Read More

Market Commentary – October 30, 2017

The last full week of October was a box full of surprises. First, U.S. economic growth exceeded expectations. The devastation wrought by Hurricanes Harvey, Irma, and Maria was widely expected to stifle U.S. quarterly growth, according to NPR. The Atlanta Federal Reserve predicted 2.5 percent gross domestic product (GDP)* growth for third quarter, down from… Read More

Market Commentary – October 23, 2017

And the hits just keep on coming. Last week was the anniversary of Black Monday. On October 19, 1987, the Dow Jones Industrial Average (Dow) lost 508 points, or more than 20 percent of its value, as it fell from the previous trading day’s closing value of 2,247 to 1,739. The culprits behind the historic… Read More

Market Commentary – October 16, 2017

There’s a new kid in town: narrative economics. Last week, Richard Thaler was awarded the Nobel Prize in economics. His work in behavioral economics and finance recognizes not all economic and financial decisions are made after rational reflection. In Nudge, he wrote: “The workings of the human brain are more than a bit befuddling. How… Read More

Market Commentary – October 9, 2017

Slow and steady… It has been 332 days since the Standard & Poor’s 500 (S&P 500) Index experienced a 5 percent drop, reported Barron’s. If there isn’t a selloff on Monday or Tuesday, this will become the longest rally without such a drop. During this period, the Index has gained 33 percent. Think about that… Read More

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Market Commentary – October 2, 2017

A lot happened during the third quarter of 2017, but not much changed. The bull market in U.S. stocks continued to charge ahead. Traditional measures of valuation continued to suggest the market is overvalued, but some analysts argued it’s different this time. The Economist explained: “The current [cyclically-adjusted price-to-earnings] ratio of 31 suggests that stocks… Read More