For the past 20 years, June has been one of the worst months of the year with only 40% of the time being positive. Whether this year will follow the trend is dependent on two major economic data: the job report and the CPI.
The job report that was released last week was lower than expected with 559,000 new jobs added compared to 674,000 expected. This slowed job numbers signals delayed tapering and a lower rates environment for longer. This would mean a better environment for growth stocks. …
This past Wednesday, inflation numbers were released and, as expected, they created jitters in the market. The speed at which prices rose month over month resulted in a major sell off.
When we were rebalancing our portfolio in early December, we looked at many reports by investment banks in order to gain a sense of what the S&P 500 was expected to return at the end of this year. The majority of researchers were indicating a return anywhere from 7% to 12% — for the whole year. We are now 4 months into the year and the S&P has already returned 12%!
No fund, not even the most optimistic ones, saw such a huge rally coming. If we annualize the return based on the past 4 months, we are heading into…
There has been an ongoing debate in the investment industry when it comes to value and growth. Value had a fantastic run after the dotcom bubble burst in 2000. However, the last few years of the 2010's tipped the scales in favour of growth, with many high-flying tech stocks returning double digits in consecutive years.
Ardi Aaziznia
Ardi Aaziznia is a finance professional and author of a best selling book on Amazon called “Stock Market Explained”.
