blog-03.jpg

The financial news headlines in the third quarter featured macro-level themes such as trade wars, inflation and central bank interest rate decisions. Meanwhile, the continued strength of the U.S. economy and corporate earnings were the key relevant factors driving favorable investment returns during the third quarter.

Fortunately, for us as investors it is the fundamentals of the companies we own and the underlying condition of the economy that matter the most over the long-term, not the media rhetoric. As evidence, for the third quarter Talbot Financial’s benchmark index, the S&P Total Return Index (“Index”), increased 7.7%. Year-to-date, the Index was up 10.6% through Sept. 30, 2018.

Investment returns during the third quarter were led by Health Care, Industrials, Communication Services and Technology, all of which posted returns of greater than 8%. Materials, Energy, and Real Estate were the underperforming industry sectors.

Continue reading

blog-03.jpg

Trade wars, the threat of higher inflation, and interest rate decisions by central banks dominated the financial media headlines in the second quarter. However, it was the continued strength of the U.S. economy and corporate earnings that were the most relevant factors to investors. Talbot Financial’s benchmark index, the S&P 500 Total Return Index (“Index”), increased 3.4% for the second quarter. The Index was down 0.8% for the first quarter of the year; and therefore, through the first half of the year the Index increased 2.6%.

Second quarter Index returns were led by a rebound in the Energy sector, which followed several years of relative underperformance. Technology was another sector leader for the quarter, an industry we have long over-weighted driven by our conviction of the sustainable positive impact of technology advancements driven by cloud computing. The Financial sector was the notable laggard during the quarter over concerns banks will have trouble expanding margins with a flattening yield curve.

Continue reading

  • 1
  • 2