Yearly Archives: 2011

  • 2011 End of Year Update on Consumer Spending

    Consumer spending currently accounts for approximately 70% of economic growth, as measured by Gross Domestic Product (GDP) in the United States. Hence, any news with respect to increases in consumer spending is greeted warmly by the markets looking for some signs of sustainable economic growth momentum. With this information as the back-drop, let’s review some of the more recent reports related to the spending activities of American consumers ... Read More

  • Did anyone really believe that the Debt Crisis in Europe was res

    Judging by the market’s overwhelmingly positive reaction last week to the announcement of a rescue package on the part of European leaders for the ongoing saga with Greece, one would have thought that Greece was the only obstacle preventing the stock market from moving higher. While we believe that there are still many other headwinds (Ex. jobless claims, high unemployment, weak consumer spending, lackluster real estate market, rising commodity prices, etc…) confronting the economic recovery and stock markets, this European dominated market sentiment was confirmed this week as the markets have now given back approximately 500 points (at the time of writing this post) of their recent gains over renewed concerns that the terms of the most recent rescue package may not be accepted by the Greek government and/or be enough to prevent further contagion and fully stabilize affected European banks. It remains our contention that solving the overall European debt crisis unfortunately is not that simple ... Read More

  • Is the Commodities Bull Run Over?

    While the global commodity markets turned considerably lower during the third quarter of 2011, we do not believe that a sustained drop in commodity prices is likely. Worldwide demographic trends will continue to place supply pressures on several commodity types, notably food and energy, while increased market volatility will likely result in continued investor appetites for precious metals ... Read More

  • The U.S. Economy needs the next Apple

    On this day, we mourn the loss of Steve Jobs, Apple’s co-founder and creative genius. We also mourn the loss of the innovation, perseverance and entrepreneurial spirit that Steve Jobs embodied and which once defined the U.S. economy. Apple built itself from a small start-up (i.e. 2 people) working out of a garage into a company with 300 retail stores in 11 countries and whom, at one point this summer, held the two distinctions of: 1) having more cash reserves than the U.S. Treasury and 2) surpassing Exxon Mobil as the world’s valuable company. The company used opportunities available to it within the capital markets to leverage technology to answer the everyday, yet often over looked, needs of the American consumer. In doing so, they currently employs close to 50,000 people ... Read More

  • The Fed Does a TWIST

    The Federal Reserve took another step today as part of their increasingly activist role in the capital markets in trying to provide further stimulus to a U.S. economy that is struggling to stand on its own legs ... Read More

  • Expect M and A Activity to Increase for the Balance of 2011

    Conditions appear ripe for a further increase in Mergers & Acquisitions (M&A) activity for the balance of 2011. To appreciate this sentiment, consider that cash sitting on U.S. corporate balance sheets is at its highest relative level in decades. Likely uses for this idle cash could include business expansions, stock buy-backs, dividend increases or M&A activity. Given the many economic headwinds facing the U.S. economy, including, but not limited to, high unemployment, low consumer spending, increasing commodity prices and the fear of tightening credit given the ongoing sovereign debt crisis in Europe, prospects for increased corporate earnings stemming from increased sales seem difficult ... Read More

  • Remembering 9/11…We Will Never Forget

    Heading into the 10th anniversary of the September 11 terrorist attacks, Hennion and Walsh remembers all those whose lives were lost or changed forever on that infamous day. Our thoughts remain with all of the victims of those horrendous attacks and their respective families ... Read More

  • Where are the Jobs?

    The labor picture is not improving in the U.S. and prospects for any type of a much needed short-intermediate term recovery grow more and more dubious with each passing jobs report ... Read More

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