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Nov 20 2014

Overall environment is positive for stocks

Market Recap:

Stocks started with a slight down-drift on Wednesday as investors waited for the release of the Federal Reserve FOMC minutes, which revealed a mild concern over the impact of falling inflationary pressures. The newly raised concerns reignited speculation that the Fed may not raise rates until late 2015 or perhaps not until 2016. Bond yields did climb slightly, as the U.S. dollar rose and stocks ended near flat for the day. 7 of the 10 S&P sectors were lower, as Telecom shares fell the most with a 1.06% decline, followed by Healthcare and Technology shares declining about ½% each. Consumer Discretionary and Consumer Staple, and energy shares all climbed about ½%.

Looking Ahead:

European and U.S. inflation data will be released before the opening bell rings at the New York Stock Exchange, while key housing data and leading indicators will be released at 10 AM on Thursday. Generally speaking we advise clients to remain patient as we believe the overall environment is positive for stocks. However, given our expectation of rising volatility, mostly as a reaction to geopolitical events, we also recommend a more defensive posture. The beaten up energy sector is presenting some good long-term value for investors, and high-quality dividend paying stocks continue to be attractive for investors seeking market exposure along with a steady stream of dividend income and lower overall volatility than the broader market. Our President, Oliver Pursche, will be on Fox Business next Tuesday for the six o’clock hour, as well as on CNBC for the closing bell next Wednesday afternoon at 3:45 PM to discuss our year-end outlook and how to best position your portfolio for 2015.

Don’t miss this week’s Money Matters with Gary Goldberg on Saturday afternoon at 2:00 PM and Sunday morning at 11:00 AM on WOR 710 AM Radio for our complete economic analysis and market commentary along with interviews with some of today’s most respected business leaders. Visit our website for details.