Horan - Health. Wealth. Life

Dividend Paying Stocks Struggling Mightily

Posted by David Templeton on Wednesday, May 06, 2015 in Wealth Management | Comments (0)
In a post last month we highlighted the fact value strategies and dividend paying strategies were lagging both the S&P 500 Index and the S&P 500 Growth Index over the past twelve months. Frequently the value type stocks have a dividend component that provides additional return for investors.Further confirmation that dividend paying strategies have been underperformers can be seen below. S&P Dow Jones Indices reports the average performance of the dividend payers in the S&P 500 Index have lagged ...  Read more...
Recently, a number of articles have been circulating about the need for companies to use more of a firm's cash flow to pay employees a higher wage versus using the cash flow growth to fund stock buybacks. For example,How the Stock Market Destroyed The Middle Class (MarketWatch)Stock Buybacks Are Killing the American Economy (The Atlantic)Profits Are Up, But Wages Are Stagnant. This Senator Has A Plan (ThinkProgress) The implication in a number of the articles is stock buybacks increase a company...  Read more...
Oil rig count has fallen dramatically in the U.S., yet oil supply is continuing to pile up nearly unabated. The market is of the belief that this decline in rig count will ultimately put a halt to the supply growth.From The Blog of HORAN Capital AdvisorsRex Tillerson, CEO of Exxon Mobil (XOM), recently spoke at the IHS CeraWeek conference in Houston, TX. Tillerson believes oil prices are likely to remain at a lower level for the next several years. Additionally, ConocoPhillips (COP) CEO noted t...  Read more...

Investor Letter Spring 2015: Another Weak First Quarter?

Posted by David Templeton on Thursday, April 23, 2015 in Wealth Management | Comments (0)
The first quarter of 2015 once again was a period where reported data suggests a mixed economic picture for the global economy. Interest rates declined slightly leading to positive returns for nearly all U.S. bond market segments. This was once again influenced by lower yields outside the U.S. and the strengthening Dollar. Worries about an economic slowdown have resulted in Europe, Japan and China incorporating additional economic stimulus via interest rate decreases and bond purchase programs. ...  Read more...
One interesting aspect of the recent equity market advance has been the investor focus on higher quality dividend growth equities. A result of investors' search for yield is many of these higher yielding equities are trading at the higher end of their historical valuation range. Also, given the heightened focus on yield, one would expect the higher quality dividend growth equities to have outperformed the market over the past year. However, as the below chart shows, the SPDR Dividend ETF (SDY) h...  Read more...
Awaiting the 10% equity market correction seems to be on the minds of a number of strategists as soon as the market begins a turn lower. The last correction of greater than 10% occurred in 2011 when the S&P 500 Index declined nearly 20% between July and October 2011.Since March 23rd through Friday's close, the S&P 500 Index has declined 43 points to 2,072 or a decline of just 2%. In the first week of March, the S&P fell 3.5% before rebounding. An important support level has been the 50 day movin...  Read more...
One criteria investors and strategists evaluate on a regular basis is whether or not economic data that is reported on a near daily basis is exceeding or missing expectations. A commonly reviewed index is the Citigroup Economic Surprise Indices (CESI). According to Bloomberg,"The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual releases vs Bloomberg survey median). A...  Read more...

Disability Insurance Part 1

Posted by Anna Pfaehler on Wednesday, April 15, 2015 in Financial Planning | Comments (0)
At the intersection of physical and financial wellness is insurance. A key component to your financial health is having the insurance necessary to protect you and your family from the loss of an income either as the result of a disability or death. Our next posts will be about building a safety net with disability and life insurance.  Let us start our discussion with disability insurance because while you are young and working, you are more likely to become disabled than to die prematurely...  Read more...
With first quarter 2015 earnings season beginning to hit full stride in the coming two weeks, earnings growth expectations for Q1 2015 are now negative at -4.6%. The last negative quarterly growth result was Q3 2012 as can be seen in the below table from Factset.From The Blog of HORAN Capital AdvisorsSource: FactsetOut of the small percentage of S&P 500 companies that have reported to date, 70% have cited the strong Dollar as the cause of their negative Q1 2015 report. As noted at the beginning ...  Read more...

Emerging Markets Not Out Of The Woods Yet

Posted by David Templeton on Friday, April 10, 2015 in Wealth Management | Comments (0)
As investors seem to be expecting an increase in interest rates by the Fed to be pushed out later this year, the emerging market trade has seen a positive impact relative to its U.S. developed counterpart. As the below chart shows, on a year to date basis the iShares MSCI Emerging Markets ETF (EEM) has moved up 9% versus the S&P 500 Index return of 2%.From The Blog of HORAN Capital AdvisorsThis risk on appetite has carried over into small cap stocks as well. Year to date the Russell 2000 Index i...  Read more...
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