Yearly Archives: 2011

  • Finally some Good Economic News

    During a week when the majority of the East Coast is still recovering from the devastating effects of Hurricane Irene, the market warmly received some good economic news for once. However, as has been the case previously, the headline numbers, upon further review and dissection, may not be as positive as initially reported and received ... Read More

  • Hurricane Irene Aftermath

    Our thoughts and well wishes go out to all of our clients on the East Coast that were affected by Hurricane Irene. As always, please know that we, at Hennion & Walsh, are here to help you with any of your financial needs or concerns ... Read More

  • Stagflation is Knocking on the Door

    Investopedia defines stagflation as a condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, or inflation. Given the economic data reports that I have observed thus far in 2011 (not just over the past two weeks), I believe that it is fair to say that stagflation is knocking on the door ... Read More

  • Should the U.S. Credit Downgrade Concern You?

    After markets closed for the week, credit rating agency Standard & Poor’s (S&P) announced on Friday, August 5, 2011, that it had cut the sovereign debt rating of the United States of America to AA+ from AAA. The ratings cut was the first downgrade of the U.S. AAA credit rating by S&P since S&P initially granted the AAA rating to the U.S. in 1941 ... Read More

  • The Economic Recovery Has No Clothes

    While I believe that yesterday’s 512 point decline in the stock market (which marked the 9th largest single day point decline in history), as measured by the Dow Jones Industrial Average (DJIA), was extreme, I do believe that a form of a stock market correction, with respect to the now 29 month long bull market, was long overdue ... Read More

  • Forget the Debt Ceiling Debate… Where’s the Economic Growth?

    It is our contention at Hennion & Walsh that the market has essentially priced in the belief that an agreement on raising the current debt ceiling will happen. It is just now a question of when the agreement will be finalized and what the length and terms of the finalized agreement will be. Unfortunately, the finalization of the agreement may not be enough to avert further consideration of a downgrade to the U.S. AAA credit rating by the rating agencies. Regardless, after this current debt crisis is behind us, investors, in our opinion, will return their focus to a stalling economic recovery that is facing multiple headwinds. These headwinds include a stubbornly high unemployment rate, a disturbing trend of increasing jobless claims, elevated commodity prices, a lackluster residential real estate and increasing sovereign debt problems overseas and, as previously discussed, on our homeland ... Read More

  • Healthy U.S. Corporate Balance Sheets within an Unhealthy U.S. E

    Many U.S. Corporations continue to have very healthy balance sheets with significant percentages of cash on hand. To this end, according to a January 10, 2011 report entitled, A Cash Buildup and Business Investment, by Robert Sadowski of the Federal Reserve Bank of Cleveland, highlighted cash holdings and other liquid assets as a share of total corporate assets rising around by approximately 2% since the start of the most recent recession. This share; 7.4% as of September 2010, is the highest relative cash % for U.S. corporations since the mid-1950s. The cash on hand could support potential business expansions, dividend increases, stock buy-backs and/or mergers or acquisitions (M&A). All of these potential deployments of cash listed above could be positive not only for the each respective company but also for the stock market and economy as a whole ... Read More

  • Kicking the Can Further Down the Road

    When we, at Hennion & Walsh, consider that Washington is currently considering increasing our self-imposed debt ceiling to allow the U.S. to issue more debt to service existing debt already outstanding, we can’t help but think that we are just “kicking the can” further down the road ... Read More

Get Updates: