What to Expect In the Final Quarter This Year

What to Expect In the Final Quarter This Year

We’re finally coming to a close for 2015, and the final quarter will be the conclusion to a year that’s been defined by uncertainty and uneven performances. Mixed economic data haven’t given investors a clear vision of what the future will look like, while other regions around the world have shared in a global economic slowdown that finally culminated in a collapse in the Chinese stock market last quarter.Volatility, which had remained relatively muted for most of the year, soared at the end of August through early October and could spike yet again before we see the end of the year. Of course the biggest news so far this year is the surprising move by the Fed to hold interest rates steady despite widespread belief by Wall Street that rates would be rising this year. While the Fed will meet again in December, based on lackluster data, it seems more likely that rates won’t see a lift until the end of the first quarter in 2016 at the very earliest.Unemployment is a bright spot in the economy at just 5.1% as of September’s numbers but is somewhat mitigated by stagnant wages and persistently low inflation. GDP growth for the first quarter was revised higher to 0.6% while growth for the second quarter came in slightly higher than originally expected at 3.9%. We’ll have to wait to see what the figures for the third quarter will be, but so far it seems to indicate that the economy is actually still in a growth stage but at a much slower rate than investors want.The Big PictureIt’s too soon to know what...
What We Need To Happen For The Fed To Raise Rates

What We Need To Happen For The Fed To Raise Rates

Article SummaryThe Fed has made conflicting statements regarding the upcoming rate hike which has added volatility to the markets.Inflation and jobs are the key figures that need to improve before we see a rate increase.A delay in the Fed decision to raise rates hasn’t been overall negative for the markets and could actually contribute to more growth before the end of the year.It’s been roughly one year since the Fed ended its historic quantitative easing program and gave control of the economy back over to the free market. With those memories of a Fed driven market still fresh in investors’ minds, it seems that the Fed is once again in control of this market’s destiny. Markets are quickly retreating to a “wait and see” trading mentality when it comes to Yellen, which is contributing to a rise in uncertainty and volatility in the broader averages… Read full article at Seeking...