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The Caldwell Trust Company Blog

Investor Sentiment - Energy Stocks Rally

Posted by Chris McGee, CFA CAIA

  • Strong earnings for the Q1
  • Headlines continue to dominate capital markets
  • 10-year Treasury yield closes above 3%
  • Energy stocks rally

Earnings season (Q1) is winding down with over 90% of S&P 500 companies having reported. Earnings growth on a year-over-year basis has exceeded 20% which is shaping up to be the best quarterly showing since 2010. Upside surprises on consensus earnings is tracking to be the best in 10 years. With the market correction earlier in the year and earnings revisions the forward price/earnings ratio on the S&P 500 is around 16X earnings. To a large extent high expectations by investors has resulted in companies being less rewarded for upside earnings surprises but punished meaningfully for earnings misses. The solid fundamentals underpinning equities continues to take a back seat to the latest headlines.

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Topics: Market Preview

Is It Better to Have a Will or a Trust?

Posted by Gina B. Jordan, CFP® , CTFA

Planning for the distribution of your assets after death can be a valuable gift to your loved ones and it can give you much-needed peace of mind. But, should you use a will or a trust as your primary estate planning document? Which is best? As you evaluate your options, it can help to understand the benefits and potential drawbacks of each approach.

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Topics: Trusts & Estate Planning

Investor Sentiment - Market Fundamentals Remain Strong

Posted by Chris McGee, CFA CAIA

  • Equity markets turn positive for the year
  • NASDAQ stocks continue to lead; up over 7% year-to-date
  • Q1 earnings season drawing to a close
  • Market fundamentals remain strong

Broad domestic equity markets were up for the week in relatively quiet trading. The S&P 500, Dow Jones Industrial Average, and NASDAQ all posted gains of over 2% for the week. All three indices are now positive for the year and the NASDAQ is up over 7% year-to-date. The NASDAQ has lead the other two indices for quite a while.

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Topics: Market Preview

Investor Sentiment - Market to Date

Posted by Chris McGee, CFA CAIA

  • Equities returns flat year-to-date through April
  • Defensive sectors continue to struggle
  • S&P 500 valuation more reasonable
  • Higher interest rates still low
  • Negative news flow to continue domination of fundamentals

Capital markets at best have been challenging through the first four months of 2018. The NASDAQ continues to lead the broad domestic equity markets with a slightly positive return. Both the S&P 500 and Dow Jones Industrial Average have turned in slightly negative performance. Looking at the component sectors of the S&P 500 the more defensive sectors continue to turn in the poorest performance. Both Telecommunications and Consumer Staples are down over 10%. Returns on both Utilities and Health Care are also negative for the year though less so.

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Topics: Market Preview

Investor Sentiment - 10-Year Treasury Temporarily Breaks Through 3%

Posted by Chris McGee, CFA CAIA

  • Solid Q1 GDP reported
  • 10-year Treasury temporarily breaks through 3%
  • Equity markets flat for the week
  • Federal Open Market Committee meets next week

The yield on the benchmark 10-year Treasury bond rose above 3% during the week but closed lower by week’s end due in part to a weak Q1 consumer spending number released Friday. The initial Q1 estimate for GDP (also released Friday as part of the same report)  came in at 2.3% better than the consensus estimate of 2%. Broad domestic equity markets were essentially flat on the week. Returns for the S&P 500 and the Dow Jones Industrial Average remain slightly negative for the year; the NASDAQ is up 3%.

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Topics: Market Preview

How to Start Estate Planning: Managing Your Digital Assets

Posted by Sandy Pepper

Estate planning involves more than just preparing a will or trust to distribute your assets when you die. A solid estate plan should include strategies designed to make the process of winding down your estate and transferring your assets as efficient and organized as possible. In addition to valuable financial assets like real estate, retirement accounts, investments and business assets, your estate plan should also cover your tangible personal property, your life experiences, values and lessons you want to impart to your loved ones.

In today’s electronic age, no estate plan is complete without also referencing your digital assets. This blog post will define and explain what’s included under the “digital assets” umbrella and provide steps you can take to help ensure your wishes for your digital property will be honored. 

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Topics: digital assets

Investor Sentiment - Earnings Impress

Posted by Chris McGee, CFA CAIA

  • Domestic equities advance slightly
  • 10-year Treasury yield closes near high for the year
  • Earnings impress
  • Equity market volatility expected to continue

Domestic equity markets advanced about .50% for the week in volatile trading. The majority of S&P 500 sectors turned in positive results with Energy stocks advancing close to 3%. Energy sector stocks have outperformed all other sectors handily over the last month. Consumer Staple stocks turned in the worst performance declining over 4% for the week. The decline can be partially attributed to the poor quality of Philip Morris earnings and the decline of tobacco stocks in general.

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Topics: Market Preview

Reasons You Need a Living Will

Posted by Donna Scaglione, FRP

Most people think of estate planning as the process of having a will and/or trust prepared. While that's an important component of the process, estate planning also involves planning for periods of lifetime incapacity. A living will is an important legal document that should be a part of everyone's estate plan. In this blog post, we will explore what a living will is, who needs one, and what to consider when documenting your health care wishes with a living will.

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Topics: Trusts & Estate Planning

Investor Sentiment - Large Institutions Report Q1 Earnings in Abundance Next Week

Posted by Chris McGee, CFA CAIA

 

  • Broad domestic equity markets are up on the week
  • Banks report strong earnings; shares decline
  • Fundamentals continue to take a back seat to "noise"
  • Large institutions report Q1 earnings in abundance next week

Domestic equity markets were up in aggregate last week as trading volatility continues. The broad market advanced around 2% but year to date results hover around breakeven. Bond markets remain pretty much in a trading range and returns year to date are also around zero. High Yield debt continues to outperform investment grade bonds and the broad fixed income market in general. The yield on the 10-year Treasury rose modesty for the week but remains below 2.9%.

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Topics: Market Preview

Investor Sentiment - Q2 Earnings Season Commences Next Week

Posted by Chris McGee, CFA CAIA

 

  • Equity market volatility continues
  • Treasury yields remain range bound
  • Q2 earnings season commences next week

The volatility in the domestic equity markets continued and intensified last week primarily on talk, speculation, and ultimately uncertainty about tariffs and trade wars. As Don Draper of Mad Men fame quipped “our worst fears lie in anticipation.” Both the Dow Jones Industrial Average and the S&P 500 declined around 1%; NASDAQ 2% on the week. The NASDAQ which has led markets is now flat for the year; Both the Dow Jones Industrial Average and S&P 500 are off in the 3% range for the year. The weekly market action felt worse than it was because of the daily price swings.

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Topics: Market Preview

 


 

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