Most things function a lot better when all the moving parts work together—nonprofit institutions included. The synergies afforded by collaboration a...
Articles: May 3, 2016 | by Beppie Huidekoper | George Mateyo | Lyndon Tefft | Roger Goodman
Weak GDP - Real or Residual Seasonality?
This week at the Association for Financial Professionals New England meetings, I participated in the panel entitled “Strategies for the New World of Cash”. Our discussion focused on upcoming money fund reforms scheduled for October 2016 and the ramifications for large cash and operating asset investors.
A small United States territory in the northeastern Caribbean is causing a lot of headlines as of late. This island, about 1,000 miles southeast of Key West has accumulated $72 billion in debt.
As we come to the end of earnings season it is time for a post mortem report. We now have a clearer picture of how domestic corporations fared in three months that had unseasonably mild weather and very low energy prices. Through mid-May, more than 90 percent of reporting companies in the S&P 500 index have released first quarter 2016 earnings. Of those, 341 (75 percent) have surprised to the upside on an earnings-per-share basis with approximately 57 percent reporting positive growth. This was slightly better than the typical 70 percent “sandbag” beat that has been reported most quarters. The overall average earnings growth rate is currently at a negative -8.75 percent which is the fourth consecutive quarter with declining earnings from the peak last year. However, excluding energy and materials, earnings are only down 0.91 percent for the quarter. Moreover, many businesses are beginning to see signs of a tailwind from the recent moderation in the strength of the dollar and lower input costs.
It was a week where several Fed doves completed their transition to hawks and investors became distinctly aware that the possibility of two rate increases from the FOMC in 2016 was still the Fed’s base case scenario. The recent weak 0.5 percent GDP calculation might have given investors a false sense of comfort that the Fed would keep monetary policy in a holding pattern.