Category Archives: Investment Management

April 17

Forget North Korea – Something even more sinister is lurking in the shadows

By David Nelson, CFA The usual suspects’ valuation and politics both played a role in last week’s market decline. However, it’s safe to say rumors of another nuclear test on the Korean peninsula forced traders to the exit as the S&P 500 (SPY) closed at the lows of the day, week and month heading into […]

April 10

Market Assassins

By David Nelson, CFA Investor concern has been rising and reflected in the sideways price action over the last several weeks. We’ve rounded up the usual suspects including valuation, politics, military action and the Fed as potential assassins to a bull market now entering its 9th year. Before we break out the cyanide capsules it’s […]

April 02

French Election Adds to Market Wall of Worry

By David Nelson, CFA On the heels of a persistently low (VIX) CBOE SPX Volatility Index, markets hit a speed bump in March with most of the major averages ending flat to down for the month. The best performer was the NASDAQ which put in a small gain adding to an already very good year. […]

March 23

Canaries in the Coal Mine

By David Nelson, CFA “The canary in the coal mine is always the first to go.” For more than a century miners carried them in small cages deep into the mine as an early warning detection system for poisonous gas or carbon dioxide. The first sign of distress in the cage sent the men back […]

March 13

Reality Bites! – The End of the Trump Rally?

By David Nelson, CFA U.S. markets struggled last week closing modestly lower after several weeks of gains. Perhaps it was the exhaustion gap higher following the President’s speech or the building reality that there’s a disconnect between investor perception and the actual timeline of administration proposals. The President has said they are committed to a […]

March 06

North Korea Launches 4 Missiles – Investors Put to the Test

By David Nelson, CFA Early Monday morning Asian markets woke up to news that North Korea had launched four ballistic missiles 620 miles off its east coast. With over 28,000 U.S. troops stationed in South Korea tensions are high as officials monitor the North who say they are responding to joint military exercises hosted by […]

March 02

U.S. Market at Record Highs But Trouble is Brewing in Europe

By David Nelson, CFA Right out of the gate stocks marched higher this month picking up where January left off. The broadcast and print media both point to the animal spirits unleashed following the election and to be fair some of the rhetoric is true. However, when you dig deep that’s not the entire story. […]

February 27

Why are utilities making a comeback?

By David Nelson, CFA In a recent note Goldman (GS) Strategist David Kostin points out that; “Fund managers are currently caught between a long list of risks and a market climbing steadily to new record levels.” It’s early in the year but the cost of being under invested or even worse short, already is producing casualties. U.S. markets had […]

February 19

I’m getting worried because I’m running out of things to worry about

By David Nelson, CFA “Markets climb a wall of worry.” It’s a phrase used to describe market rallies in the face of rising investor concern. Wall Street and the media have hundreds of these phrases to put into a few words complex interrelationships that ask the near impossible of investors. Make a binary decision based […]

January 31

Trumped Up Market

By David Nelson, CFA Equity markets are in the short run a barometer of investor perception and emotion. Over the long term they are a discounting mechanism for growth and future earnings. There’s an old saying that markets hate uncertainty. The reality, is that it’s investors that hate it and often react emotionally to every […]