(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Home Chris Lai Market Currents – 3/8/18
Back Home

Market Currents – 3/8/18

byAscentadmin inChris Lai posted onMarch 8, 2018
0
0
Market Currents – 3/8/18

Return of Volatility
After a prolonged period of market tranquility with equities grinding steadily higher, volatility returned abruptly at the beginning of February. Risk assets saw their prices decline sharply, but they rather quickly recovered much of the early losses.

Sentiments in Balance
Investor sentiment entering 2018 was much more bullish than average, bordering on euphoric levels. Bullish sentiments relative to the bears have reversed from a four-to-one ratio then to a level where they are now in rough balance. As a contrarian indicator, we think that tempered investor expectations on the market is a positive development for its longer-term health.

A new Fed Head
Jerome Powell succeeded Janet Yellen as Federal Reserve Chair. His inaugural testimony before Congress led to investor concerns of faster-than-expected rate increases from the central bank. The latest FOMC meeting minutes, however, suggest that even though the committee remains optimistic on the outlook for the US economy, the belief is that monetary policy needs to be normalized very gradually.

Tariff Tantrum
President Donald Trump said the United States will impose tariffs on steel and aluminum imports, in a move that will likely increase tensions with major trading partners such as China. Stocks reacted negatively initially, but have since recovered most of their lost ground. New trade tariffs are not without precedent, and do not necessarily start a trade war. The risk becomes possible retaliation from US trading partners. The situation is dynamic, to say the least, and we are monitoring developments closely.

Exodus at the White House
The White House is facing some chagrin following further high-profile departures. Gary Cohn, the top White House economic adviser, is the latest to resign from the Trump administration, following alleged disagreements with the President’s tariff decision. Many viewed the former Goldman Sachs executive as a steadying influence on economic policy, and consider him to be “Wall Street friendly.” Hope Hicks, the President’s Communications Director, also recently left the West Wing.

Shift in Market Climate
We sense that market climate is changing. Money is getting tighter as interest rates move higher, and inflation is perking up at a higher pace than prior. Add to that the large proposed increases in Federal spending, combined with deficits from the tax cuts, and we are embarking on a different course for the economy than has defined the last several years.

A Bull Market Correction
Volatility has returned to the market, and will likely remain present for a while. A more aggressive Fed and a tariff announcement have played a role, but we don’t see these as threats to the bull market. Strong earnings momentum, corporate tax cuts, deregulation, and fiscal stimulus underpin our positive view. We maintain the view that this pullback is a healthy correction within a bull market.

Christopher Lai
Senior Portfolio Manager

Share:

Previous

Market Currents - 2/14/18

Next

Our Facebook Thoughts

Related Posts

Market Currents – 7/1/19
July 1, 2019
Market Currents – 7/1/19
No Comments
Market Currents – 4/9/19
April 9, 2019
Market Currents – 4/9/19
No Comments
Market Currents – 9/13/21
September 13, 2021
Market Currents – 9/13/21
No Comments

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • What Is Your Cash Doing For You?
  • Market Currents – 2/7/23
  • Market Currents – 1/12/23

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • What Is Your Cash Doing For You? March 7, 2023
  • Market Currents – 2/7/23 February 7, 2023
  • Market Currents – 1/12/23 January 12, 2023
  • Strategizing For 2023 January 6, 2023

Login To Your Schwab Account

Copyright © 2023 Ascent Wealth Partners. All Rights Reserved.