Fund Architects Blog
Style and Market Cap Valuations
Valuations are vital in assessing potential future leadership. We’ve often stated economic cycles and valuations are key components in determining our portfolio positioning and implementing our dynamic management style. So where do things stand in terms of US equity style and market cap valuations? Continue reading »
Mixed Messages
In regular readings of financial market conditions and outlook from a variety of sources, it is hard not to notice a disparity in opinions. For every bull there seems to be a bear. For every indication that the global economy is on firmer footing than recent years past, there are ominous signs of threatening weakness. The abundance of news and opinions may leave both novice and professional investors overwhelmed. Continue reading »
Earnings Season Update
So far this earnings season companies are reporting earnings that are exceeding estimates, according to Factset. As of April 26, 2013, 271 companies in the S&P 500 index had reported earnings. Of these companies, 73% reported earnings that were greater than the mean estimate. However, on the downside, only 44% had topped revenue expectations. Continue reading »
Defensive Leadership
This year’s stock market rally has been led not by cyclicals, which normally lead in heady times, but rather by sectors associated with defense. It is not the energy, materials, and industrials leading the way, but health care, telecom services, consumer staples, and utilities. Continue reading »
Gold Pummeled
Gold prices have been hammered hard in the last two days of trading as prices for April delivery, the front-month contract, are down more than $200 per ounce since Thursday. On Monday, gold dropped 9.4%, the most in percentage terms since 1980. Continue reading »
GDP Growth
Economic activity in 1Q13 is believed to have performed relatively strongly as US GDP growth estimates are around 3.0%. Forecasters say companies rebuilding inventories and consumers remaining resilient with their spending are largely accountable for the impressive quarterly growth. Continue reading »
Retirement Assets
The Investment Company Institute (ICI) recently released an updated report on the US retirement market stating retirement assets hit a new record high of $19.5 trillion as of December 31, 2012. This total was 8.6% higher for the year and up 44.4% from March 31, 2009 when retirement assets hit a low during the recession. Total assets are 7.9% higher than the previous peak of September 30, 2007 set before the onset of the recession. Continue reading »
Size doesn’t matter
Cyprus is small in many senses. Economically, it has been referenced that the country’s economy is about 0.2% of euro-zone GDP and 0.03% world GDP. Geographically, it is a map dot from an American perspective. Population wise, Cyprus comes in at roughly 1.1 million people. Small in many respects. Continue reading »
Euro Zone Woes
Recently, the European Commission provided an updated forecast for the euro-zone economy. The forecast was rather pessimistic and predicted economic shrinkage for 2013, which would be two years in a row and three of the last five years. Continue reading »
Spyder on the Move
The following one-year chart of the SPDR S&P 500 ETF courtesy of BigCharts as of Friday, March 08, 2013, afternoon shows a rather steady incline so far for the 2013 period. There has not been much of a pullback or even a pause during 2013. We have to go back to late December 2012 to see a testing of the 200 day moving average and back to mid-November shortly after the US Presidential election as the last time this ETF broke the 200 day moving average. Continue reading »