Facts to Engage Your Clients2018-10-19T13:17:59+00:00

Engage Your Clients

Rising Rates Raise Interest

The Federal Reserve raised interest rates late last month, as expected, and forecast three more years of economic growth as the U.S. central bank left its policy for steady rate rises in place. The Fed lifted the benchmark overnight rate by a quarter of a percentage point to a range of 2.00% to 2.25%. (Source: Yahoo.com)

4th Quarter Returns

History favors the bulls for potential 4th quarter returns. Over the past 9 years, during the 4th quarter of the year the S&P 500 Index has been positive 8 out of 9 times and has returned 6.8%, on average. (Source: CNBC.com)

Job Claims: Bullish or Bearish?

Jobless claims are at 49-year lows, and have historically spiked dramatically ahead of recessions. However, bear markets are typically preceded by low jobless claims, just as we’re witnessing now. For that reason, over the intermediate term, market technicians consider high claim figures to be bullish, and excessively low jobless claims bearish – a contrarian indicator. (Source: Putnam.com

What, Me Worry?

In a measure of how anxiety seemed to fade in the third quarter, the CBOE Volatility Index dropped more than 19% over the period, its biggest quarterly decline since the 1st quarter of 2016. Daily moves were also muted; the S&P 500 didn’t have a single session in the quarter where it closed with a 1% move, whether up or down. (Source: MarketWatch.com)

 

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