MarketView Chart of the Week, posted June 27, 2003
The Federal Open Market Committee (FOMC), currently chaired by Alan Greenspan, cut the fed funds target rate by 0.25% on Wednesday. Money market fund rates have been declining since 2001 (rates shown reflect fees charged by the funds). We can expect money market fund rates to increase once the FOMC begins to raise the fed funds target rate.
MarketView Chart of the Week, posted June 20, 2003
The Conference Board’s Index of Leading Economic Indicators posted a surprise 1.0% gain during May and could be a signal of improving economic conditions.
MarketView Chart of the Week, posted June 13, 2003
The recent two-month rally in domestic equity markets has many investors drawing comparisons to the late nineties bull market. However, with more brick and mortar leadership and fewer pipe-dreams, this rally has a broader base to build upon.
The total amount of money in circulation (money supply) affects the prices of finished goods and inflation. When too much money circulates in relation to available goods and services, interest rates are driven down, and prices and inflation rise. Conversely, when too little money circulates, interest rates tend to increase, prices drop, and overall productivity slows.
Saturday, May 31st, marks the 40th anniversary of the annual exam for the Chartered Financial Analyst (CFA) program designation. ICMA-RC is proud of our associates who have achieved this credential and we wish our candidates the best of luck on Saturday!
For much of the past year, the U.S. dollar has been weakening versus most of the world. But the weakening dollar has not improved the trade gap for the U.S.
MarketView Chart of the Week, posted April 25, 2003
Erosion in the workforce continued in April, albeit at a diminished pace. Economists and analysts vary in their opinion of the seriousness of the report.
MarketView Chart of the Week, posted April 25, 2003
During the first quarter of 2003, the preliminary Gross Domestic Product (GDP) translated to an annual growth rate of 1.6%. The latest report strengthens the belief that the economy is presently experiencing only weak growth.
MarketView Chart of the Week, posted April 18, 2003
Since the end of the bull market consumers have been able to slowly increase their rate of savings, and continue their increased spending habits as personal incomes have risen.
MarketView Chart of the Week, posted April 11, 2003
Since the end of the bull market consumers have been able to slowly increase their rate of savings, and continue their increased spending habits as personal incomes have risen.
MarketView Chart of the Week, posted April 4, 2003
Lowered inventory levels have set the foundation for increased production. However, business and consumer demand needs to increase, or factories need to be closed, to raise the capacity utilization rate.
MarketView Chart of the Week, posted March 28, 2003
The uncertainty of when the war with Iraq would begin caused oil prices to rise towards $40 per barrel. However, once President Bush’s March 17 deadline passed and war became a reality, prices dropped to under $30 per barrel.
MarketView Chart of the Week, posted March 21, 2003
The recent market rally, driven by growth sectors (such as information technology) has propelled growth stocks into the lead. Historically, Growth stocks have led the way out of a down market.
MarketView Chart of the Week, posted March 14, 2003
Current oil prices are at levels not seen in many years, due primarily to the risks of an Iraqi conflict. Fortunately, oil futures contracts point to steadily lower, not higher, prices.
MarketView Chart of the Week, posted March 7, 2003
A rebound in the information technology sector could indicate increased interest in capital investment; this has been a critical missing component in economic growth.
MarketView Chart of the Week, posted February 21, 2003
December’s trade deficit of $44.2 billion is the largest on record. A weakening dollar should narrow the trade deficit by making US goods more attractive to foreign purchasers (increasing exports) and foreign goods more expensive to US consumers (reducing imports).
MarketView Chart of the Week, posted February 14, 2003
Normally economists expect declining consumer confidence to be a precursor to declining consumer spending. However, recent consumer spending seems to be trending upwards, while consumer sentiment (confidence) is trending the other direction.
MarketView Chart of the Week, posted February 7, 2003
The $232 billion deficit achieved in 2002 represents the start of what many believe may be a return to the large annual deficits of the 80s and early 90s.
MarketView Chart of the Week, posted January 10, 2003
The financial media has reported that the current three-year decline in stocks is the longest skid since the early 1940s. However, by outperforming stocks the past three years, bonds are also matching a streak last seen sixty years ago.