Market Update

WSG PRO Strategy

Understanding Key Economic Relationships in our Portfolio Management

At WSG, we closely monitor several key economic indicators to inform our Proactive Risk Optimization (PRO) strategy in portfolio management. Understanding these relationships is crucial in making informed decisions that align with our goal of being a leader in wealth management.

GDP and Unemployment Rate (Okun’s Law):

GDP is a crucial economic scorecard, indicating how well an economy is performing. Generally, a high GDP correlates with lower unemployment rates as businesses thrive and hire more workers. However, this relationship can vary due to factors like technological advancements, which can lead to GDP growth without a corresponding decrease in unemployment. In our PRO strategy, we consider these nuances, recognizing that GDP growth doesn’t always equate to lower unemployment, impacting consumer spending and investment trends.

WSG’s Market Commentary and Investor Insights for January 2024

Q4 2023 Economic Recap: In the fourth quarter of 2023, the economy showed mixed signals. GDP growth was moderate, reflecting a resilient but cautious economic environment. Inflation, while still a concern, showed signs of stabilization. The unemployment rate remained low, indicating a strong job market, but consumer spending was inconsistent, suggesting varying levels of consumer confidence. The housing market showed a slight cooling, aligning with the trend in interest rates, which saw marginal increases. The stock market experienced volatility, highlighting the importance of strategic investment planning.

ChatGPT-powered Wall Street: The benefits and perils of using artificial intelligence to trade stocks and other financial instruments

Artificial Intelligence-powered tools, such as ChatGPT, have the potential to revolutionize the efficiency, effectiveness and speed of the work humans do. And this is true in financial markets as much as in sectors like health care, manufacturing and pretty much every other aspect of our lives. I’ve been researching financial markets and algorithmic trading for

Investor Psychology When Bull Markets Take Hold

Why most investors are not at all positive during a bull run – and miss out In the world of investing, there are few phrases as exhilarating as “bull market”. These words conjure images of an economy burgeoning with opportunity, a period when stock prices are on a steady upward trend, promising lucrative returns to

Investor Expectations and Market Realities

Tech and AI are capturing all the hype, but look to fundamental indicators In recent times, investor expectations have shown a concerning trend of becoming detached from the realities of the market. The focus on technology and artificial intelligence (AI) has largely kept investors engaged and buying, creating a sense of enthusiasm that seems to

Are We on Our Way to Solving the Coronavirus Problem?

It goes without saying that the coronavirus pandemic is a serious problem, on many levels. But is it a solvable one? One way to find some answers is to look at the actual data. Let’s start with what we know. Can the Virus Be Controlled? First, the virus started in China, and it got a

Is the Bear Market Here to Stay?

With the Dow dropping 20 percent from its highs and the S&P 500 following suit, we have finally seen the end of the bull market. And so we find ourselves officially in a bear market, with all that implies. Stock markets around the world dropped again on the news. There are a few reasons for

2020 Stock Market Declines: Date Vs. Headlines

March 2020 has not been kind to the markets. Earlier this month, markets dropped worldwide. On March 9 (the 11th anniversary of the bull market), they declined by 7.5 percent, the largest drop since 2008. In less than a month, we’ve seen a total decline of almost 19 percent. It certainly seems that we’re in

What Does the Coronavirus Mean for Investors?

Despite attempts by Chinese authorities to contain the coronavirus, the numbers make clear that the virus is now spreading around the world. According to the World Health Organization, there are 79,331 confirmed cases, of which 77,262 are in China and 2,069 are outside of China (as of February 24, 2020). Unfortunately, the numbers only seem

Weekly Market Update for September 23, 2019

General market news Last week, the Federal Reserve (Fed) cut rates by 25 basis points (bps), bringing the lower rate target to 1.75 percent. The 10-year Treasury opened early Monday at 1.69 percent after posting its highest rates since the end of July at 1.90 percent. The 2-year Treasury touched 1.80 percent and opened at

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