Market Commentary by Dan Teed
As January Goes...
February 7, 2013
There is a saying in the capital markets that “As January goes, so does the rest of the year”. Given that the S&P 500 was up over 5% for the month of January, I really hope this saying is true for 2013. The reality, however, is that the markets will fluctuate and sometimes fluctuate wildly. In the past few years we have seen some of the most volatile markets in history. So, what does “the rest of the year” have in store for the markets? Let’s take a look at the potential positives and negatives they may face.
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The Risk of Rising Interest Rates
Bond Risk
Last week the Federal Open Market Committee held a two day meeting to discuss how the Fed viewed the current economic situation. These meetings occur every month, and at the conclusion of the meeting they release the opinion of the committee members and how they feel the Federal Reserve should act going forward. For many months the Fed has declared that they see rates remaining low “well into 2014”.
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Elections and Equities
October 3, 2012
In just over a month the citizens of the United States will head to the polls to cast their ballot for President. While this is the “headline” political race, it is not the only one. In terms of policy implementation, the races for House and Senate seats are just as important. For the equity markets, the results of each race can have a major influence on the equity markets, historically speaking.
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Wedgewood Investors, Inc.
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E-mail: dan@wedgewooderie.com