Womack Investment Advisers

Womack ­Weekly Commentary   March 27, 2017 The Markets You’ve read it before – and it’s true. Markets hate uncertainty. Failure to pass the American Healthcare Act, which was supported by Republican leaders in Congress and President Trump, may have spooked U.S. stock markets last week. In an article titled, “How To Make Investing Decisions Based On Politics: Don't,” Nasdaq.com reported controversy over the bill was “raising questions about [Republicans’] ability to focus on and pass policies that the market has been eagerly anticipating, such as tax reform and infrastructure spending.”   Financial Times concurred: “The post-election stock market rally has been largely powered by hopes Donald Trump’s administration would swiftly launch a bevy of aggressive economic stimulus measures, including tax cuts, deregulation, and infrastructure spending. However, Mr. Trump’s difficulty in Congress over the government’s healthcare plan has prompted some...

Bloomberg by Brian K Sullivan Another wave of tornado-spawning thunderstorms is set to rip across the Great Plains and South this week, putting the U.S. within reach of a record year for life-threatening twisters. Severe storms will drench a swath of the country from Texas to Mississippi over the next five days, according to the U.S. Storm Prediction Center. Through Thursday, 369 tornadoes have been reported across the country, the most in five years and more than double the normal number of sightings. An active jet stream and unusually balmy weather are to blame for the burst of deadly tornado activity, the storm prediction center said. Strong winds have dragged storms into the warm, humid air that’s blanketed the eastern half of the nation, creating conditions ripe for a weather phenomenon that leads to at least $400 million in damage a year in the U.S. “We have a severe threat starting today and continuing for each of the next five days through at lea...

Bloomberg by Lananh Nguyen & Robert Fullem Dollar bears are back from the wilderness. The currency slid to the lowest since November on Wednesday, and options show investors are becoming more pessimistic on the greenback versus the euro and yen. The dollar has almost erased its gains from the so-called Trump Trade, as pro-growth policies from the presidential administration have yet to materialize. UBS AG’s wealth-management unit recommended selling the dollar against the euro, and JPMorgan Chase & Co., the world’s second-biggest currency trader, advised clients to ditch bullish bets in the short term. “The case has become more compelling” to short the dollar, said Constantin Bolz, a foreign-exchange strategist at UBS in Zurich. The bullish dollar consensus since Donald Trump’s election in November “is turning step by step” ...

Today the stock markets are experiencing a pull-back of 1% or more—the biggest drop in the markets in the last 2 months. What does it mean? Is the Trump stock market rally in jeopardy, or is it just a pause before the next leg up?  Now is a good time to evaluate your investment risk level and adjust your portfolio accordingly. Do you know your risk number? Get your free, no-obligation report on your risk level. This report will let you know if you are taking too much risk or not enough risk. Click here to complete your personal risk profile. You’ll receive your Riskalyze report via email.  Please call ( 877-340-1717 ) or email ( raegan@womackadvisers.com ) with any questions.

­Womack Weekly Commentary March 20, 2017 The Markets Three steps and no stumble… Technical analyst Edson Gould developed a market rule of thumb known as ‘three steps and a stumble.’ It states stock prices may fall after the Federal Reserve (Fed) raises the Fed funds rate three times in a row without a decline, according to Market Technicians Association . [1] The idea is three increases show the Fed is serious about keeping rates at a relatively high level for a significant length of time. Higher interest rates could potentially mean higher costs and lower profits for businesses. As a result, stock investors may sell shares and share prices may fall. [2] Last week, with employment and inflation data approaching Fed targets, the Federal Open Market Committee raised rates for the third time, pushing the Fed funds target rate into the 0.75 percent to 1 percent range, reported Financial Times : [3] “Fed policymakers’ forecasts for growth and inflation ...