VOLATILITY HAS RETURNED

VOLATILITY HAS RETURNED

VOLATILITY HAS RETURNED

After the 2018 fourth‐quarter meltdown, the stock market returned to its low volatility ways. There were 87 trading days since the last 3% correction. Not only was the current stretch abnormal from a duration perspective, it was unusual coming off a low. Perhaps it was the Federal Reserve “Pivot” that lulled the market into complacency. In January, the Federal Reserve made an unexpected 180 degree policy change from increasing interest rates and signaling the end of its …

IS THE CORRECTION HERE?

In our July, 2018 Riggs’ Report “Removing the Punch Bowl—A Sign of Good Growth but a Tricky Business,” we stated:

…perhaps more important to the investment markets is how skillfully the Federal Reserve manages their quantitative tightening program.  The actions of the Federal Reserve and the uncertainty around the trade negotiations could spook the investment markets and so we want to tread carefully right now.  With that as the backdrop, we are also heading into a seasonally weak …

Examining Global Economic Growth

Riggs Asset Management - Economical Growth

“The US economy is strong,” says Bob Graham, President of Riggs Asset Management. “By any measure that we look at today, US and economic growth is as strong as it’s been in decades.”

The unemployment rate for people with a high school education or less is the lowest it has been in over 20 years, and there is an increased demand for laborers like truck drivers and warehouse workers, which is indicative of a strong economy. 

Check out this video …

Removing the Punch Bowl-A Sign of Good Growth but a Tricky Business

“The Federal Reserve…is in the position of the chaperone who has ordered the punch bowl removed just when the party was really warming up.” 

Federal Reserve Chair William McChesney Marting, Jr., October, 1955.

It was a choppy ride in the investment markets for the first six months of the year.  The Federal Reserve continued its path of quantitative tightening by raising its policy rate for a second time this year and projected two more hikes in 2018.  The Tax Relief …

Professional Women

Riggs Asset Management - Professional Women

Did you know that women are the primary breadwinners in 40% of US households? Furthermore, women hold 52% of management and professional jobs in the country, and own 30% of all private businesses. “As these women reach retirement, they will make significant decisions about their assets,” says Susan A. Shoemaker, Vice President of Riggs Asset Management in Wilkes-Barre. “At Riggs, we listen to our clients and focus on concerns that are forefront in their minds.” 

In this clip, Susan explains …

The Return of Volatility

The first quarter of 2018 started with a bang as January proved to be a strong month providing a continuation of last year’s rally. Since then, the stock market has faded and volatility has returned.  The return of volatility is especially pungent given that 2017 had the lowest stock market volatility in history.  We see this as a return to normal and healthy market conditions. It is worth noting, that since 1950 there have only been 12 previous years with …

2018 Investment Outlook

2017 was an excellent year for the investment markets and the global economy.  We saw acceleration of economic growth in the U.S. and abroad which led to increased global trade.  Companies have been beating their estimated earnings projections; and as a result, U.S. equity markets went on a tear.  With such a strong year, the question on everyone’s mind is “can 2018 keep up?”

Looking forward, we see further improvements in economic growth.  Our research indicates that the U.S. could …

Are Central Banks a Risk to the Markets?

The US and global economies are doing well. Here in the U.S., natural disasters such as hurricanes and fires seem to have had little or no effect on economic growth. The European Union is experiencing their best economic expansion in years and Japan is experiencing their best growth since the 1990’s. In fact, the majority of the world’s economies seem to be doing quite well. The markets are in a unique place where the confluence of improving global growth and …

Summer Swoon to a Normal Pull Back

The recent dip in the markets has many investors nervous; this is understandable given current headlines from dysfunction in Washington, policy shifts by the Federal Reserve and geopolitical risk on the Korean peninsula.  However, at least so far this is looking like a normal seasonal pullback in the equity markets.

In our most recent Riggs Report, we discussed our outlook for the equity markets for the second half of 2017, in that Report we stated:

The first half of …

The Good News is the Economy is Doing Well…The Bad News is the Economy is Doing Well

The U.S. economy continues to hum along and we are now seeing signs of economic expansion in China and Europe as well.  The equity markets have rallied higher the first half of 2017 and, historically, a good first half of the year bodes well for continued stock market growth in the second half.  As global economies gain momentum, we are seeing Central Banks move forward with unwinding their accommodation policies.  As you know, the actions to promote economic growth by …