It’s been difficult to make a bad bet on the U.S. markets over the last six years. Historically low rates set off a run in asset prices that has topped averages for bull markets. While economic growth hasn’t surged higher than pre-financial crisis levels, it has rebounded relatively well compared to that of other countries. But it’s beginning to look like the ride may be coming to an end. The first rate increase in nearly a decade could usher in an era of tighter monetary policy. While low energy prices could provide some upside on consumer spending, the energy sector… Read More
It’s been difficult to make a bad bet on the U.S. markets over the last six years. Historically low rates set off a run in asset prices that has topped averages for bull markets. While economic growth hasn’t surged higher than pre-financial crisis levels, it has rebounded relatively well compared to that of other countries. But it’s beginning to look like the ride may be coming to an end. The first rate increase in nearly a decade could usher in an era of tighter monetary policy. While low energy prices could provide some upside on consumer spending, the energy sector has acted as a huge drag on corporate earnings where the group accounts for 6.6% of the S&P 500. #-ad_banner-#In fact, the S&P 500 has risen just 0.3% this year for its worst performance since 2011 and the third worst year of the last decade. Contrast this with another market that has lagged behind the S&P 500 in four of the last six years but faces significant tailwinds in 2016: Europe. While the United States was pumping hundreds of billions in fiscal and monetary stimulus into its own economy, this market was fighting fiscal tightening and slower monetary stimulus growth. … Read More