What We’re Up To …

What We’re Up To …

Investor Insights, May 11th, 2018


Five Things You Should Know


  1. Equity Markets – were positive this week with U.S. stocks (S&P 500) up 2.57% and international stocks (EAFE) up 1.18%

  2. Fixed Income Markets – were also positive with investment grade bonds (AGG) up 0.01% and high yield bonds (JNK) up 0.28%

  3. Earnings Season – “More than 1,000 companies have reported their Q1'18 results and the earnings and revenue beat rates have been very strong, according to Bespoke Investment Group. So far this earnings season, 71.6% of companies have topped consensus analyst EPS estimates, while 72.1% of companies have beaten top-line revenue estimates. If the 71.6% earnings beat rate holds through the end of the reporting season (mid-May), it would mark the strongest showing since Q3'06. If the revenue beat rate finishes above 70.0%, it would mark just the second quarter (Q4'17 is the other) to exceed that level since Q1'04.” (via First Trust)

  4. Geopolitical Events – President Trump and Kim Jong-Un have agreed to their highly anticipated meeting on June 12th in Singapore. The summit will mark the first ever meeting between a sitting president and a North Korean leader and the announcement comes one day after North Korea released three American prisoners. Trump remains optimistic an historic peace deal can be reached. Meanwhile on less positive news the president withdrew from the 2015 Iran nuclear deal and reinstated financial sanctions with the goal of forcing Iran to renegotiate an agreement. The exit puts at jeopardy billions of dollar of investments by European companies and oil spiked to its highest level since 2014. It remains to be seen what this means for the countries remaining in the agreement.

  5. Key Insight – In the video above we share some more background on where the firm is heading, and the “why” behind some of our new communication efforts. Below, we take a look at why despite a near-term inflation tailwind, hyper-inflation fears and the related market fears of such an environment are probably overdone.


To read the full article/watch the video, click below!

Investor insights

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