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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

 


 

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