Horan - Health. Wealth. Life

Reallocating From Fixed To Equity Has More Room To Run

Posted by David Templeton on Thursday, March 06, 2014 in Wealth Management | Comments (0)
One factor that can serve as a tailwind to a positive equity market is investors repositioning their investment portfolios from a too much fixed income allocation into a larger equity allocation. Below are a few highlights from an article appearing in The Wall Street Journal after the market close yesterday:Tuesday was the largest single-day outflow ever for BlackRock Inc.'s (BLK) iShare's fixed-income ETFs, a spokeswoman said.Some $6.2 billion poured out of bond ETFs on Tuesday as investor conc...  Read more...

Dividend Payers Continue To Struggle In 2014

Posted by David Templeton on Tuesday, March 04, 2014 in Wealth Management | Comments (0)
With the strong market rebound in February, the dividend payers in the S&P 500 Index have continued to lag their non-dividend counterparts. As the below table shows, the equal weighted return for the non-dividend payers outperformed the payers by 2.61 percentage points in February. On a year to date basis, two months, the non payers have outperformed the payers by a large 6.73 percentage points. With this large of an underperformance by the payers, it could an uphill battle for the payers to clo...  Read more...

Market's Reaction To Geopolitical Events

Posted by David Templeton on Tuesday, March 04, 2014 in Wealth Management | Comments (0)
Seems logical to say today after the sharp snap-back in global equity markets; however, past crisis have generally provided investors with good buying opportunities versus selling. As we noted in our post over the weekend, the Ukraine crisis was/is likely to not have a long term negative impact on global market returns. Last September Sam Stovall of S&P Capital IQ issued a report highlighting prior geopolitical crisis' impact on the markets and the subsequent recovery period. The average days ne...  Read more...

Ukraine/Russia War: Impact On The Markets

Posted by David Templeton on Sunday, March 02, 2014 in Wealth Management | Comments (0)
Much of the market's focus starting the week has turned to the potential impact of Russia's invasion of Ukraine (Crimea). As I am writing this post, S&P 500 futures are down just under 1% or 17.7 points to 1,839.90. The night is long so much can change as it relates to the market's ultimate reaction to the events in Ukraine on the first trading day of the week.A similar scenario played out in August 2008 during the Russia/Georgia conflict. At that time the market pretty much traded sideways unti...  Read more...

A Worsening Job Situation For The Unemployed

Posted by David Templeton on Sunday, March 02, 2014 in Wealth Management | Comments (0)
Several reports issued over the last few weeks related to the employment market have generally not been positive. Last week the report on jobless claims showed an increase of 14,000. Econoday's view on the report:Jobless claims are not pointing to any improvement in the labor market with initial claims up 14,000 in the February 22 week to a 348,000 level that's just outside the high end of the Econoday consensus. The 4-week average is unchanged at 338,250 which is slightly higher than the month-...  Read more...

Week Ahead Magazine: February 23, 2014

Posted by David Templeton on Sunday, February 23, 2014 in Wealth Management | Comments (0)
With the Sochi Winter Olympics coming to an end, sports enthusiasts can now begin to focus on college basketball's March Madness.  For investors though, last week's holiday shortened trading saw the S&P 500 Index close down fractionally. This felt like a win after January's market decline and subsequent rebound in February. All eyes continue to be on the Fed as they continue to taper QE activities. One article link in the magazine looks at the fact the Fed purchased over 70% of the net issuance ...  Read more...

Corporate Profit Margins Not At A Peak

Posted by David Templeton on Sunday, February 23, 2014 in Wealth Management | Comments (0)
Morningstar economist, Francisco Torralba, Ph.D., CFA, recently published a report that looked at corporate profits broken down between profits generated internationally versus profits generated in the U.S. This distinction is important as many strategists contend the profits to GDP ratio, or as they call it profit margins, are at a peak and unsustainable, i.e., will mean revert in the near term. The chart that is often displayed to support this view is the following one:From The Blog of HORAN C...  Read more...

S&P 500 Companies Accelerate Buybacks

Posted by David Templeton on Saturday, February 22, 2014 in Wealth Management | Comments (0)
S&P Dow Jones Indices has reported preliminary fourth quarter 2013 buyback activity for S&P 500 companies. The report notes companies in the index increased the dollar amount of buybacks by more than 30% on a year over year basis: $129 billion in Q4 2013 versus $99 billion in Q4 2012. In spite of the increase in cost of buybacks in 2013 due to the market's 30%+ price advance in 2013, companies are expected to continue returning cash to shareholders via higher dividends and buybacks this year. Th...  Read more...

Market In Long Term Uptrend

Posted by David Templeton on Thursday, February 20, 2014 in Wealth Management | Comments (0)
A post we wrote yesterday after the market close noted the similarity of the S&P's recent market pattern to prior chart patterns. One market technician I follow is Charles Kirk of The Kirk Report. I have found Charles' technical analysis as some of the best. I am summarizing here; however, he believes chart patterns provide important insight into the market's near and long term direction. Today he linked to our article from yesterday and made the comment to his readers to note the recency bias i...  Read more...

A Market Consolidating Before New Highs Ahead?

Posted by David Templeton on Wednesday, February 19, 2014 in Wealth Management | Comments (0)
Year to date the S&P 500 Index is down approximately 1% on a price only basis; however, for investors, the start of the year has been anything but a smooth ride. Through early February the S&P 500 Index declined almost 6% before recovering most of the loss these past several weeks.From The Blog of HORAN Capital AdvisorsThe question for investors is what lies ahead for the market. For traders, and not necessarily longer term investors, some consolidation of these recent gains would be healthy for...  Read more...
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