Fourth Quarter 2015 Market Review

Fourth Quarter 2015 Market Review

Market Overview

During 2015 the US stock market posted its worst overall performance since the financial crisis of 2008. That being said, the DJIA decline of (2.23%) and the S&P 500 decline of (.73%) were modest compared to the 40% decline registered during that time. A global commodity drop led by a 30% drop in oil a year following a 50% decline in 2014 is cited as a major reason for the poor performance. The Energy sector was the biggest decliner of the S&P 500 falling (24%) during 2015. The steep drop in oil and commodity prices also spilled over into the bond markets, as energy and miner credits weakened. Much of this year’s gains were concentrated in a small number of primarily consumer discretionary individual stocks.
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Third Quarter 2015 Market Review

Third Quarter 2015 Market Review

Even with multiple positive revisions noting US economic expansion in the second quarter and pegging US 2nd quarter growth at an annual rate of 3.9%, the US stock market could not shake off the global turmoil primarily related to the reported slow-down in China. In addition, The FOMC (Federal Open Market Committee) did not increase short term interest rates despite telegraphing multiple signals that they would be raising and that left investors confused and uncertain on the actual state of the US economy. Today’s disappointing jobs report will only add to that uncertainty with a reported addition of 140,000 jobs, well below the 200,000 consensus estimate. World markets including the US were very volatile during the third quarter. The fourth quarter looks to be more of the same. Today’s Dow tape went from a decline of 260 points to up 200.
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2015 – The Year in Review

2015 – The Year in Review

As Published in the Winter 2016 Edition of NJ Lifestyle

Volatility was the overall theme of the stock market in 2015, but despite the wild swings to the upside and downside, the market finished roughly flat for the year, posting a price only return of -0.73%. The market finally experienced the “inevitable correction” that investors and analysts had been calling for since mid 2013. In May, the S&P 500 hit an all-time intraday high of 2,134. In August, the S&P fell to an intra-year low of 1867, representing a drop in value of 12.5%. After an initial September rally that faded back to market lows, October rewarded investors with a 13% rally, hitting 2116 in early November, before sliding back to 2043 to end the year.
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Second Quarter 2015 Market Review

Second Quarter 2015 Market Review

Market Overview – June Gloom!

Equity markets slumped during the final 5 trading days of the quarter ending June 30th, and the US market endured its worst single day performance of 2015 on June 29th when the DJIA lost 350.33 points. Most point to the uncertainty and the media magnified headlines of Greece, China and Puerto Rico as the main culprits. To those whom have been paying attention, all this news separately would be of no surprise and almost a non-event, but when highlighted repeatedly and bolted together by the media, you have all the makings of a mini panic heading into a long holiday weekend, all the while providing undisciplined nervous participants multiple reasons to sell. The month ended in the red for both domestic and international equities, as well as all bond classes. The exception was the Russell 2000, which eked out a monthly gain of .60%. – Nothing to write home about.
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Understanding Investment Fees: Do You Know What You Are Paying?

Understanding Investment Fees: Do You Know What You Are Paying?

As published in the Holiday 2015 Edition of NJ Lifestyle

More often than not, when we ask a potential client what they are currently paying in investment fees, we receive one of two answers:

  1. I don’t know.
  2. I don’t pay anything.

The first answer is understandable, as the transparency of investment fees leaves a lot to be desired, and the second answer is just wrong. Fees come in various forms; including commissions, portfolio management, operating expenses, and 12-b1 fees. Although you may not see the fee, it does not mean you are not paying it.

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