Elite Wealth Management Blog


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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How Much Of A Correction Do We Really Need?

We’re three months into 2015 and the markets haven’t given investors a lot to be confident about. The S&P 500 is slightly positive year-to-date – up 1.33% – and disappointing economic data seems to point to an inevitable pullback…

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Here’s The Hottest Sector For A Slowing Economy

There might have been a positive vibe for stocks coming into 2015, but relentlessly negative economic data seems to be doing everything it can to warn investors that a correction is upon us. Just take a look at how indecisive stocks have been trading for the past several months…

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A Look Inside Hedge Fund Holdings May Tell Us Where The ‘Smart Money’ Thinks Stocks Are Headed

There’s a lot of different methods investors use to gauge the market’s direction. Charts can reveal trading patterns, ratios give way to valuations, and macroeconomic analysis can predict future trends. Another way to get an idea of what’s happening is to simply look at what the institutional money is doing. And the highest echelon of institutional money management is the hedge fund…

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What’s Fueling Stock Gains Overseas?

It’s gone unnoticed for most of the year, but U.S. stocks aren’t the biggest bull market. While domestic markets have performed fairly well just two months into the year, markets overseas are outperforming them by a considerable margin. Based on the blasé performance of U.S stocks over the last week, the secret could be out…

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What Corporate Earnings Are Telling Us About Equity Valuations

Just six weeks into 2015, stocks are hitting new record highs. The S&P 500 briefly closed above 2100 this week, a historic high for the index, and it’s up nearly 2.5% YTD. Despite macroeconomic headwinds like oil prices and the European stimulus plan, investors seem to be inexorably optimistic…

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The Myth Of Central Bank Stimulus And Economic Recovery

The United States wrapped up its unprecedented quantitative easing program late last year and now Europe is wading into those very same waters in the hopes that it will kick-start its economy and prevent deflation. Considering that we’re facing improving growth this year, it seems – on the surface at least – that central bank action works to prevent recessions and trigger economic booms…

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Finding Value Stocks In Energy

Thanks to the global oil crash, volatility has spiked erratically since the fall of last year. From mid-October, the VIX has broken above 20 four times. Once in October, once in December, and now twice in January. The uncertainty regarding the direction of oil prices and the duration of the fall has impacted the broader indices, although the most notable change has occurred in energy stocks…

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Why The U.S. Will Dominate Markets In 2015

It’s the beginning of 2015 and investors are speculating on what market will be the best performing for the year. China’s immense growth over the past decade has finally begun to wane and other major markets like Japan and Europe are signaling difficulties as well. Emerging markets are always a popular place to seek out exceptional growth, but the BRIC countries may not offer the kind of strength investors are looking for. Ironically, investors may not have to widen their search at all to find the best performing market for 2015 – the United States…

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5 Things To Watch For In 2015

As we launch into the new year, we begin to focus our attention on what the financial landscape will look like in 2015. After another year of the bull market extending its run and the major averages hitting record highs, economic rumblings on the horizon threaten continued growth for next year…

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Top Speculative Stocks That Analysts Are Missing

Trying to get an edge in the stock market is a daunting task. You’ll need to spend your time pouring over charts, corporate earnings statements, financial statements, and the macroeconomic environment if you want to stay on target…

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What Investors Can Learn From The Portfolios Of Fund Managers

As children, we often idolize certain types of people like athletes and musicians. When we practice, we attempt to emulate the styles of those we look up to. Investors are no different. The ones we look up to are the ones that manage institutional accounts like hedge funds and mutual funds. We want to know who’s buying what to reaffirm our own stock selections…

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The Best Global Market For Your Money

The global economy has changed the way we approach investments. Just a few decades ago, creating an investment portfolio was a relatively simple affair. Mutual funds were the captains of the financial services industry and any stocks owned by individuals were most likely large cap, blue chip, American names. The idea of owning assets outside of the U.S. was considered risky and unnecessary…

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