AI Enthusiasm and Rate Cut Expectations Power Stocks Higher in 2023
By John Lau January 2, 2024 – What a difference a year makes. At this time last year, the S&P 500 had just logged its worst annual performance since the financial crisis, the Fed was in the midst of the most aggressive rate hike campaign in decades, inflation was above 6% and concerns about an […]
Bullish or Bearish: My Analysis
By John Lau, CPA, CFP® December 4, 2023 – In a call with a long-time client yesterday, he asked where I thought the market is heading, and whether I am bullish or bearish going forward. I think this may be a question in many people’s minds, so I want to take this opportunity to address […]
Why Tech Is Driving the Selloff and What Can Stop This Selloff?
By John Lau, CPA, CFP® October 31, 2023 – The S&P 500 fell to fresh five-month lows last week thanks not to rising yields (they fell), or geopolitical concerns, but instead because of earnings, as the number of companies reporting some sort of “miss” (whether on EPS, guidance, revenue, or margins) continued to grow. Notably, […]
Higher Interest Rates Weigh on Stocks in the Third Quarter
By John Lau,CPA, CFP® October 2, 2023 – The S&P 500 started the third quarter largely the same way it ended the second quarter – with gains. Stocks rose broadly in July thanks primarily to “Goldilocks” economic data, meaning the data showed solid economic growth but not to the extent that would have implied the […]
Why Have Markets Suddenly Become Volatile?
By John Lau September 1, 2023 – The S&P 500 managed a solid gain last week, but volatility continued to rise. One reason why markets have suddenly become volatile is, for the first time in months, economic data and earnings commentary implied there are some risks to the “Three Pillars of the Rally” (Soft/No Landing, […]
“TOO HOT” OR “TOO COLD” DATA CAN STILL UNDERMINE OR END THIS RALLY
By John Lau July 31, 2023 – The stock market rallied to new 2023 highs last week on strong earnings and a largely as expected Fed decision before hot economic data saw volatility pick up into the weekend. Unlike the January-through-May advance in the S&P 500, the rally since June hasn’t been driven primarily by […]
Declining Inflation and Resilient Growth Push Stocks Higher in Q2
By John Lau July 5, 2023 – The second quarter of 2023 saw an acceleration of the tech sector outperformance witnessed in the first quarter, as “AI” enthusiasm drove several mega-cap tech stocks sharply higher. Those strong gains resulted in large rallies in the tech-focused Nasdaq and, to a lesser extent, the S&P 500 as […]
Debt Ceiling Update & Summer Catalyst Cheatsheet
By John Lau June 1, 2023 – President Biden and Speaker McCarthy agreed in principle to a two-year debt ceiling extension over the weekend, likely removing the risk of a debt ceiling breach. From a market standpoint, the news may cause a temporary knee-jerk rally, but I don’t think this will necessarily be a sustainable […]
Your Money Matter Video Series
By John Lau
What Happens If There’s No Debt Ceiling Deal?
By John Lau May 17, 2023 – The high-level meetings between Republican leaders and President Biden have so far yielded no real progress on the debt ceiling, and with just two weeks until the “X” date (the date at which the Treasury hits the debt ceiling) many people are asking questions about what might happen […]
How saving for retirement has changed in 2023
May 17, 2023 – Managing Director, and Principal John Lau CPA,CFP was featured in SFGate discussing ‘How saving for retirement has changed in 2023.’ Lau says this 529-to-IRA conversion provision is helpful to parents and children alike. “That is actually a pretty good idea and we’ve been promoting that to clients who have young children,” […]
What Can Break The S&P 500 Out of the Current Trading Range?
By John Lau May 1, 2023 – The S&P 500 has stayed broadly rangebound for most of 2023, trading between a low of 3,800-ish and a high of 4,200-ish.[1] For the market to break out of the current trading range, though, I believe real progress has to show up in the monthly jobs reports, CPI […]