Elite Wealth Management Blog


Buybacks Boost Silicon Valley

The Bay Area knows its way around an expansion cycle. Few have experienced equity volatility like Silicon Valley, for both public and private entities. Low interest rates and a general appetite for risk has seemingly pushed tech multiples to the moon, but this underlying trend has bolstered The Valley more than many give it credit.

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What Actually Drives the Price of Oil

Commodities are often associated with purely speculative investments. This is simply not the case. Just like a stock, commodities have fundamental drivers too.

The price of oil has become increasingly more important since it began to tumble back in June of 2014. When the market started to trend with oil, interest in black gold surged even more. With renewed interest in oil, it’s essential to look at what the professionals consider when analyzing a trade.

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How the ECB is Actually Hurting Banks

European bank stocks have been getting slammed. Concealed by Chinese Yuan and Federal Reserve headlines, European financials have secretly been having a terrible year. Poster child European banks like Deutsche Bank and Credit Suisse are down nearly 30% and 40% respectively in the last six months—

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Myth: America Will End Up Like Japan

“Whatever it takes” is an aggressive mandate for monetary policy—nothing short of historic. Momentous action is called for, however, in the case of Japan. The Bank of Japan (BOJ) is attempting to rescue the country from its decade long economic slump. Accordingly, Japanese central bankers have passed some of the most aggressive policy measures ever seen. Despite these actions, Japan is still plagued with subpar inflation growth and is far from its consumer price index goal.

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Edge in Selling Options Part I: The Buy-Write

Alpha can be elusive. Many investors spend their careers chasing fads and attempting ill-fated trades to hopefully boost their performance. Finding these opportunities, historically, required a research team and other scarce trading resources. Now more than ever, these capabilities are freely available to investors through technology. Interest in extracting alpha via options has brought forth the rapid adoption of options as a risk management and return enhancement tool.

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So the Fed Raised Rates…Now What?

Janet Yellen is in a tight spot. Domestic economic indicators seem to be strong compared to the rest of the world, but a backdrop of diverging international economies seem to have gotten the better half of other central banks.

Despite these concerns, the Fed stuck to its plan of raising interest rates in December to 0.25%, kicking off a new interest rate regime. Going forward, investors will need to look at the 2016 calendar for clues as to when the Fed will raise again.

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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.

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What We Need To Happen For The Fed To Raise Rates

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…

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Understanding The Difference Between A Correction And The Start Of A Recession

Wall Street has been behaving erratically over the past few weeks ever since the Chinese contagion finally reached U.S. shores. As of the close on September 8, 2015, the S&P 500 has shed nearly 110 points, a 5.29% loss, in the past month even after recovering from a drop of nearly 230 points earlier. Meanwhile volatility has soared more than 85% over the same time frame and is currently holding steady around 25…

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The Stealth Bear Market That Could Take Markets By Surprise

Investors have been on a bit of a rollercoaster ride the past several days as the markets dipped down and back up by hundreds of points. Volatility rocketed up with the VIX ending Thursday the 20th at 19.14 and reaching a staggering high of 53.29 intraday on Monday the 24th – an increase of more than 178% in less than two trading days…

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Great Expectations And Truth In Earnings

The broader indices continue to tread water at or near all-time highs despite unconvincing mixed economic data and crises in both Europe and China. While the Greek debt issue seems to have come back under control, the collapse in the Chinese stock market has yet to bleed over into domestic markets. Yet the threat of a possible loss has not seemed to faze stocks…

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Arbitrage Opportunities Abound

Financial markets around the world have been roiling over the past few weeks. The Greek debt crisis, Chinese stock market crash, and plunging oil prices have triggered a wave of selling and have reintroduced volatility back into the markets…

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Is Space The Next Big Investment Venture?

Beyond the standard business cycle of expansionary and recessionary phases where certain stock sectors outperform or underperform more than others, a larger cycle exists. It’s a much longer cycle that can take time to develop but once it gains enough momentum, could last for decades…

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Emerging Economies In Growth Mode

As domestic markets become filled with turmoil, investors may start to feel disillusioned about equities. While the first two months of 2015 started off well enough, the broader indexes tapered off and began to tread water until late June. Now volatility has leaped up and threatening to cross the 20 threshold amidst mixed economic data, the Greek debt crisis, and a Chinese stock market selloff that has dragged the S&P 500 down 3.43% since June 23rd…

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Where Did All The Volatility Go?

There’s something interesting happening in the financial markets right now. And the way the markets reacted to the Greek debt crisis on Monday could be a precursor to a far bigger problem. There’s been irrational behavior displayed by traders and investors for the last several months – it’s not quite the kind of “irrational exuberance” once coined by Alan Greenspan, but there are some disturbing correlations that are being displayed in the markets starting with a peculiar lack of volatility…

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What the Sudden Wave of IPOs Mean for the Stock Market

Investors haven’t had a whole lot to cheer about in recent months. The constant threat of a Greek default, wild swings in the price of oil, and uncertainty about the upcoming Fed Funds rate hike has infiltrated investor sentiment. The markets have basically traded sideways since late February waiting for either good news or bad news to finally tip the scales to send them higher or lower…

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What Effect A Yield Surge Will Have On Stocks

This year, investors will be faced with something that they haven’t seen in a long time – a Fed Funds interest rate hike. Last year saw the tapering and eventual completion of the historic quantitative easing program designed to inject liquidity into financial markets and restart the economy. The normally dovish Fed made a statement recently that seems to confirm that there will be a rate hike in 2015…

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Disruptive Companies To Watch Out For

The biggest impacts on the world by corporations don’t come by being the same – it’s what stands out that makes a difference. Disruptive innovation is a powerful force that almost everyone strives for but few succeed at. When the opportunity arises, companies face a dilemma – keep growing in the current market and strive to make a product or service better or embrace a new way of doing things that will open up an entirely new and undiscovered market…

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3 Key Drivers For Economic Growth

U.S. financial markets have been touch-and-go this year and mixed economic data points to a murky outlook for growth. The S&P 500 is up just 1.93% year-to-date while the NASDAQ has posted a far more impressive 5.19% gain. The yield on the 10-year Treasury note has fluctuated quite a bit from a low of 1.65% to a high of 2.29% – its current yield. However, volatility as measured by the VIX has dropped over 27% – currently hovering below 14…

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The Dollar Could Fall, But That’s Not A Bad Thing

The almighty dollar has been the war cry of the U.S economy for more than six months and the stock market has risen along with it. Take a look at the correlation between the U.S. Dollar Index and the S&P 500 (SPX) since late October of last year…

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How To Play The Second Quarter

The first quarter of 2015 officially ended March 31st and the results are disappointingly lackluster. Data is often revised backwards to adjust for new information, but it would take a huge revision to change the outlook most economists have for the 1st quarter…

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