economy Archives - Page 6 of 16 - Runnymede Capital Management

Should you buy or sell the spike in fear?

The Dow dropped 1300 points in a couple of days and the CNBC fear machine cranked into high gear. Even Fox Business News got into the action with the headline grabber “Biggest market crash in our lifetime coming – economist Harry Dent.” Of course if you google “Harry Dent crash,” he makes the same call every year so it is meaningless. The real question is: should you buy or sell the fear? The answer: it depends.

Are you prepared for the next financial hurricane?

The media is focused on Hurricane Florence and its path toward the Carolinas and Virginia. Being a category 4 hurricane with 130 mph sustained winds, over a million residents are subject to mandatory evacuation due to risk of life-threatening storm surge, dangerous winds, and flooding. Our government is warning residents to take protective measures. This week also marks the 10th anniversary of the Lehman Brothers collapse; yet in the financial industry, investors are often told to stay the course and ride out the storm. Can you suffer through another bear market like 2000 or 2008 when the S&P 500 fell over 50%?

Andy Wang on Reuters TV: Tariffs, Earnings, and Service Sector Companies

Last Friday, August 31st, Runnymede managing partner Andy Wang returned to The Reuters Building in Times Square to chat with news anchor Fred Katayama. In this segment, Fred asks Andy about a variety of subjects including trade talks, emerging markets, and why Runnymede likes service sector companies.

Throwback Thursday: Sell Everything or Buy?

Sometimes it is fun to look back and see who made the correct call on the markets. High profile investors make bold calls but are seldom held accountable for the bad ones. Yet, the media will go back to the “big” names year after year because they generate clicks for their ad dollars. Unfortunately this doesn't bode well for your investment portfolio if you take their newsworthy headlines as actual investment advice. Let's take a look back two years to the summer of 2016 when two of the most prominent investors Bill Gross and Jeffrey Gundlach were screaming SELL!

Fundamentals matter: the bull market grinds higher

After the historic low volatility seen in 2017, the first four months of 2018 have felt especially turbulent even though the market has largely moved sideways. The 24 hour news cycle has been louder and gives negative news more amplification. Worries this year have focused on the potential of trade war with China, rising inflation and interest rate hikes. While these are certainly legitimate concerns, we suggest to our clients and readers that you often need to turn off the news and simply focus on the fundamentals. The good news is that fundamentals from US corporations are still improving and point to a bull market that should continue to grind higher for the rest of the year.

S&P earnings are strong and optimistic for 2018

The constituents of the S&P 500 are wrapping up an extremely strong 4th quarter earnings season. Even before tax reform kicks in, corporations reached record operating profit margins at 10.4%. Furthermore, companies beat on the top and bottom line with over 75% beating estimates which is an eight-year high. Looking ahead, it is no surprise that earnings revisions are trending higher across all sectors.