“It’s Just like (1999/2007)” … No, It’s Not
Weekly Commentary, December 1st, 2017
- Equity markets were mixed this week with U.S. equities (S&P 500) up 1.57% and international equities (EAFE) down -0.73%.
- Fixed income markets were down this week with investment grade bonds (AGG) down -0.34% and high yield bonds (JNK) down -0.65%
- D.C. Drama – markets had a lot to digest Friday on news that former national-security adviser, Michael Flynn, pleaded guilty to lying to the FBI regarding his previous statements on conversations he had with a former Russian ambassador. As of now no details on the specifics of the case have emerged. Meanwhile in tax reform the GOP Senate bill vote looks to be gaining steam, most notably with Senator McCain issuing support this week for its current iteration. Markets rallied this week to new closing highs yesterday after the Senate Budget Committee approved the Republican tax bill, a crucial procedural step toward a vote by the full chamber later this week.
- Fed Update – Jerome Powell, President Donald Trump’s nominee to head the Federal Reserve, held to the monetary trajectory set by current chair Janet Yellen in a statement to the Senate Banking Committee ahead of his confirmation hearing. In the text, released by the Fed on Monday, he offered a robust defense of how the institution operates, regulates and guides the U.S. economy.
- Brexit Update – U.K and E.U. negotiators have reached a preliminary agreement on the divorce bill that Britain will pay when it leaves the bloc, but the deal still needs to go to national governments for approval, according to Bloomberg. The U.K. is said to have accepted total liabilities of as much as €100B, but aims to pay half of that and spread it over many years. The main issue now is around the border with Northern Ireland and possible additional restrictions.
- Commentary: This week we look at the truths, or mistruths, behind some of the popular negative narratives comparing today's market to historical market peaks.
- Annual TEN Cap Holiday Party is next week! Register HERE.
Join us for our annual party with clients and friends, as well as their (grand)children, to celebrate Christmas and the Holiday season at the MAC Museum. Dinner, the Titanic exhibit, tour the Campbell House and more!
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