Equity Market Recovery Stalls As Global Condition Ebb

By Mitchell Anthony October 21 2019   US Economy continues to ebb and flow.  The recovery in the equity markets that began in January paused in the third quarter as investors became uneasy with weak economic data on global economic conditions, as well as a deteriorating industrial sector here in America.  The consumer side of the economy remains quite robust and as contributed to optimism that has kept the market on a plateau and gave sellers reason to pause.Read more

Q2 2019 – Markets advanced with defensive leadership

Q2 2019 - Markets advanced with defensive leadership By Mitchell Anthony The US Economy continues to ebb and flow producing steady but below trend growth for several quarters.  This trend seems likely to continue as the economic environment stays extremely stable with low inflation, friendly fed policy, and employment at all-time highs.  The Current trends in the US economy show a mixed picture but generally improving economic fundamentals are visible. Read more

Corporate American Superstars

Corporate American Superstars By: Mitchel Anthony Facebook, Amazon, Apple, Netflix, and Google (The FAANG) have been the pride of corporate America for many years and have been at the top of the list of most growth portfolios.  Their innovation has changed the world and given America reason to be proud of what capitalism can produce.  Every economic cycle has growth leaders but these great companies have set a standard that will be remembered for decades if not centuries to come.  There are always doubters and those that believe the growth leaders in our economy are somehow cheating or taking advantage of consumers of their products.  We have seen this talk in the past and undoubtedly will see it again. The political mess in Washington somehow believes that Facebook, Amazon, and Google should be broken up because they have become too big and powerful and as a result are stifling competition.  This has investors concerned and their stock prices have waned as a result.   Apple is suffering from a different type of political problem.  They are caught up in the middle of a trade war that impacts prices for their products.  As a result the growth outlook for the FAANG has clouds on the horizon.Read more

GLOBALIZATION AND THE TRADE WAR

The news flow over the last few weeks has centered on Trumps attempts to level the playing field with America’s adversaries and partners.  This would include China, Mexico, and much of Europe. The game at play involves global trade and Trumps desire to better position America as a major exporter of goods and services to the emerging middle classes in China, India, and Asia.  Investors are always worried about change and this game at play could put America back into a whole new cycle of amazing growth similar to the nifty 50s.  Thus far we have seen more pessimism rather than optimism. As a result the markets have fallen 5 to 7% on this recent news flow. Synthesizing the right decisions out of these developments is our challenge as we try to stay ahead of where investors will go over the next year as they watch Trump do what he does best - negotiate and deal. Read more

Donald Trump Grows Confident On Re-election

Donald Trump surprised the markets and investors last week when he announced decisions to continue to aggressively battle China and seek significant gains in a trade agreement as his reelection year approaches quickly. Most investors believed that Trump was more concerned about the short-term gains for the economy than the long-term potential that would be derived from a trade agreement.  As a result investors likely believed that Trump would back off the aggressive tone he had taken previously toward the Chinese and either sign a compromised agreement or allow this opportunity to pass. This obviously did not happen. Read more