Economy Accelerates Despite Tariffs and Trouble in Social Media

By Mitchel Anthony The US economy continued on its path of acceleration in the third quarter at the expense of rest of the globe.  Virtually all sectors of the US economy reported robust growth and improving demand for their goods and services throughout the third quarter.  While the naysayers worried about the impact of tariffs and the trouble in social media, the equity markets notched a terrific quarter with returns exceeding 7% or more across most domestic large-cap indices.  MACM’s dynamic growth portfolio advanced 9% in the quarter and its diversified equity portfolio advanced 10.1% in the quarter far exceeding the bogey of the S&P 500 which was up 7.4%. Read more

Strong Economic Data Drives Equity Performance Higher

US Stocks have regained their footing as predicted in our first quarter newsletter. We believed equities would get back on track after first-quarter earnings reports and economic data that we expected to be quite positive. This is exactly what happened in the second quarter. The leadership centered on domestic equities with NASDAQ and small cap stocks at the top of the list.  Foreign markets tumbled as expectations for growth in the globe receded given the current environment for trade and impending tariffs. Emerging markets and China suffered the most with Europe closely behind in the freefall.  This downturn came and pushed money into the US markets as the US economy stands strong in the trade war. In anticipation of this MACM exited all of its investments in emerging markets in Europe toward the end of Q1 and repositioned the portfolio in domestic equities leveraged to consumption themes present in America.Read more

Equity Markets Delink From Economic Data And Get Distracted With Washington Policy.

Equity Markets Delink From Economic Data And Get Distracted With Washington Policy. Equity markets in America suffered their worst quarter in over two years as 2018 began on a soft note. The softness in equities in Q1 followed an outstanding year for equities in 2017 and was not surprising for many investors but was unwelcome for traders.  The S&P 500 fell .76% in the first quarter of 2018.  Mitchell Anthony Capital Management (MACM)’s clients enjoyed much better performance in Q1 with almost all strategies posting positive returns.  MACM’s diversified equity portfolio advanced 4.8% , DYNAMIC GROWTH advanced 3.5% HIGHLY FOCUSED EQUITIES advanced 5.4%,  ASSET ALLOCATION INCOME advanced 3%, and GROWTH advanced 4% in the quarter.  MACM’s clients enjoyed 372 - 620 basis points of positive alpha in Q1 of 2018. This outperformance was attributed to the superior group of equity holdings in the portfolios managed by M ACM.   Positive alpha was gained from holdings in healthcare, Internet retailing, technology, and financials. Conversely MACM had only modest holdings in areas like telecom, energy, utilities, and consumer staples (which led the equity market lower).Read more

What a Year!

2017 began with optimism from investors, consumers and businesses.  The market’s great year began with a great first quarter followed steadily by similar gains in Q2 - Q4.    Washington policy took a turn for the better despite unrest amongst the liberal socialists in our country.   Trump’s first year was difficult for him and the nation as the country failed to unite; however, progress was made as Trump proved himself worthy of the job and did get one of his initiatives done! The tax cut was a great victory for business and had some modest benefits for most Americans as well.  The obstruction to Trump's plans was unfortunate.  It continues but shows signs of waning as liberal democrats are losing face, and possibly their will to continue, as meritless attacks failed to distract the White House agenda, but did wear on the American public’s tolerance for dishonesty from their leaders and the media. Read more

Markets & Economy Stay on Track

The American Economy continues to show signs of improvement and the growth picture has improved.  As a result the equity markets have moved significantly in the first half of the fourth quarter.  Economic results showing the health of the consumer, industrial sector, and globe have trended higher throughout Q4. This along with strong corporate earnings announcements since the end of Q3, have provided fuel for higher equity market prices.  While many thought the leadership in the market was due for a change toward value, this has not occurred, and better earnings continue to drive the growth markets higher.Read more