Category Archives: Asset allocation

  • Dow 11,000 – now what?

    The DJIA has just crossed 11,000 - a significant milestone in the continuing recovery of this widely recognized U.S. blue-chip index. In fact, the last time the Dow closed above 11,000 was back on September 26, 2008. However, before everyone starts to uncork their champagne bottles, we, at Hennion & Walsh, would suggest that it is too soon to signal "all-clear" for the equity markets and too soon to declare an official end to this current U.S. recession ... Read More

  • The Long Awaited Return of M&A Activity

    In a positive economic development, Mergers & Acquisitions ("M&A"), as many analysts have predicted, have already started to heat-up in early 2010. In fact, BersteinReseach has forecasted at 35% increase in M&A activity in 2010. Some of the more noteworthy M&A deals that have been announced thus far in 2010 have included: ... Read More

  • Current Bull Market marks 1 Year Anniversary

    The current bull market will mark its official 1 year anniversary this week - March 9th to be specific. History suggests that this is a critical milestone and one in which investors should pay attention to. According to Bespoke Investment Group, of the 26 bull markets - with bull markets defined as at least a 20% rally that was preceded by at least a 20% decline in the S&P 500 - that have taken place in the history of the S&P 500, 13 of them (i.e. 50%) have lasted for more than one year. The average length and gain of bull markets that pass the one year anniversary mark is 4.4 years and 152.81% respectively. Furthermore, only two of the previously highlighted 13 one year + bull markets lasted fewer than 2 years ... Read More

  • What to make of the Fed’s Recent Interest Rate Hike

    What to make of the Fed's Recent Interest Rate HikeThe Federal Reserve surprised virtually everyone after the markets closed yesterday by announcing their intentions to raise the Discount Rate by 0.25% (i.e. 25 Basis Points) from 0.50% to 0.75%. This marks the first time that the Federal Reserve has raised the Discount Rate since June of 2006 ... Read More

  • Beware of the P.I.I.G.S.

    If you have been wondering what specifically has been one of the main culprits in the stock market devaluation in recent days, look no further than to a group of countries in Europe affectionately known as the P.I.I.G.S. The countries, which many believe are the weaker components of the Euro-zone, include Portugal, Ireland, Italy, Greece and Spain ... Read More

  • Are Interest Rates Heading Higher in 2010?

    Using the Effective Federal Funds Rate as a proxy for interest rates, it is reasonable to conclude that interest rates are at historic lows and likely to only go higher ... Read More

  • GDP Growth?

    The Commerce Department today reported a 5.7% increase in gross domestic product ("GDP"), at an annual rate, during the fourth quarter of 2009 - 5.7%! This exceeded the 4.8% consensus median forecast by close to 20% on a relative basis. It also followed a 2.2% GDP growth rate in the third quarter of 2009. So why is the U.S. stock market barely reacting to this seemingly positive trend? The answer to this question lies in some of the significant data components underlying this most recent GDP report ... Read More

  • How Much Debt is too much Debt?

    Earlier this morning, credit rating service Standard & Poor's ("S&P") revised its credit outlook on Japan to "negative" from "stable." This could seemingly pave the road to a future downgrade to Japan's current AA long-term rating. As part of rationale behind the revision to their credit outlook for the country, S&P cited concerns over amount of Japanese government debt outstanding. Japan's government debt is already among the highest in the world and S&P thinks the debt burden might peak at a level as high as 115% of their Gross Domestic Product ("GDP") over the next few years ... Read More

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