By D. Scott Peterson
My weekly talking points are snippets of ideas that are pertinent to today’s markets. They come from my readings, American history background, and from 30 years’ experience trading and investing in the American Capital Markets. They are designed to help you improve your investing knowledge and get beyond the flood of information (we call this noise) from the media, most of which is counterproductive. Review these periodically, they may help improve your investment choices.
1. The U.S. markets have been in a sideways trading range since the fall of 2014.
2. This is not unexpected since the markets have risen steadily since the spring of 2009.
3. One major reason for this is the change in Federal Reserve Bank policy from one of easing interest rates to the probability of raising rates.
4. Another is that corporate earnings, while generally positive, have not been strong enough to push stocks higher.
5. There are a number of other factors that also are weighing on the market.
6. While there has been job growth, there hasn’t been much wage growth, and the number of people looking for work has been the highest in years.
7. The situation in Greece is at a crossroads into the European Union and its economy and the Euro. Markets don’t like uncertainty.
8. China’s stock market has been extraordinarily volatile and efforts by the government to stabilize it have been unsuccessful. This calls into question the strength of the Chinese economy.
9. Finally, a strong dollar makes U.S. exports more expensive and cuts into corporate profits.
10. Until we get clarity on some of these issues, and better corporate earnings as the year wears on, the market is likely to remain in this trading range.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations of any particular security, strategy or investment product for any individuals. Information contained herein has been obtained from sources believed to be reliable but not guaranteed. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.