sofi wealth, market commentary

Europe and the U.K. Look Strong – Week of Dec. 7, 2016

Recently released data continues to show a world economy gaining momentum. While the U.S. jobs report was mixed, business survey data from the U.S. and elsewhere showed continued and accelerating expansion. The recent rise in bond yields moderated this week as market attention focused on a slate of events including the Italian referendum and upcoming meetings of the European Central Bank (ECB) and Federal Reserve. Read more
sofi wealth, market commentary

Yields and the Dollar: Onward and Upward – Week of Nov. 30, 2016

The Trump theme discussed in our last commentary continues to drive markets. The promise of infrastructure spending and tax cuts have driven Treasury yields higher and strengthened the dollar almost relentlessly since the election three weeks ago. So-called “animal spirits” and self-fulfilling expectations can often move markets. However, this rally has been accompanied by solid economic data that supports the narrative of faster growth and inflation. With the risks of a post-election panic diminished, we have reduced fixed income duration in our portfolios in order to avoid capital losses from rising real interest rates. Read more
sofi wealth, market commentary

Market Drops as Election Looms – Week of Nov. 7, 2016

Equity markets continued to fall last week. The S&P 500 matched its longest losing streak since 1980 with 9 straight losing days as polls indicated a tightening race for president. The search for safety from political uncertainty resulted in rising Treasury prices (and falling yields) throughout the week. While the price action has been painful over the last couple weeks, the economy continues to look good and we still expect a December rate hike from the Federal Reserve. Read more
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