Womack Investment Advisers

Weekly Market Commentary   June 26, 2017 The Markets It has been a very good year, so far. Through the end of last week, the Standard & Poor’s 500 Index posted 24 record highs and delivered returns in the high single digits. The MSCI World ex USA Index was up more than 11 percent, and the MSCI Emerging Markets Index gained more than 17 percent. After reading those numbers, many people would assume bond markets are down for the year. After all, stock and bond markets tend to move in different directions. Zacks explained, “Stock and bond prices usually move in opposite directions. When the stock market is not doing well and becomes risky for investors, investors withdraw their money and put it into bonds, which they consider safer. This increased demand raises bond prices. When stocks rally and the risk seems justified, investors may move out of bonds and into stocks, driving stock prices up further.” That hasn’t been the case recently. Bond...

The bull market in U.S. stocks has been charging ahead for more than eight years. 1 While that’s young in people years, it’s ancient in bull market terms. Since World War II, the longest bull market in U.S. stocks lasted for almost nine-and-a-half years. The shortest sputtered out after just 13 months. On average, bull markets last for slightly less than five years, according to Fortune . 2 So, how much longer will this bull market persist? No one knows for certain. In fact, financial professionals have different opinions about the future of the markets. Some believe this bull market will plod ahead, while others believe a bear may be prowling. Often, these beliefs reflect specific aspects of the market. For example: Economic factors: In late May 2017, Chief Investment Officer and founding member at Advisors Capital Management, Charles Lieberman, wrote in Bloomberg View he expects the bull market to continue: 3 “The market has it essentially right: U.S. econ...

­Weekly Market Commentary June 19, 2017 The Markets All eyes on inflation! Inflation is the way economists measure changes in the prices of goods and services. The United States has enjoyed relatively low inflation for a significant period of time. Last week, the consumer price index indicated inflation had moved lower in May. Inflation is our focus because it is at the core of two very different opinions that currently are influencing markets and investors. A commentary on the Kitco Blog explained: “One of the most important economic debates today is whether the economy will experience reflation or deflation (or low inflation) in the upcoming months. Has the recent reflation been only a temporary jump? Or has it marked the beginning of a new trend? Is the global economy accelerating or are we heading into the next recession?” Another key factor is employment. Traditional economic theory holds when unemployment falls (i.e., when more people are e...