WrapManager's Wealth Management Blog
When life changes, we can help you thoughtfully respond.

What's Ahead for Investors in 2016?

Posted by Michael J. O'Connor | CWS®, Vice President Investments

December 30, 2015

When you think about it, investing is a lot like life: some years are great, some less so, but at the end of the day it’s of utmost importance to keep looking forward. In both endeavors we learn from our triumphs and mistakes, and we use that knowledge to keep getting better as we go.

2015 was a lot like 2011: a year when the stock market was rather volatile and did not offer much by way of positive returns.1 The U.S. and global economy grew but earnings felt some downward pressure from the Energy sector;2 the Federal Reserve raised interest rates for the first time in nearly 10 years;3 the Chinese economy started to show signs of slowing; Europe is showing signs of recovery, but remains fragile. Nothing seems alarming or wrong with the global economy – it just has that “middle of the road” feeling.

But it could get better from here. Below, we’ll use charts to take a look at where the markets stand now and how economic growth is shaping up around the world, and we’ll offer some insights as to what might be ahead for investors in 2016. The message overall: stay positive.

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Portfolio Strategy stock market performance

How Do U.S. Presidential Elections Affect the Stock Market?

October 14, 2015
National politics are set to take center stage of media coverage, gripping the minds and TV sets of many American households. With political TV ad spending expected to eclipse $4.4 billion in this cycle,1 however, and with politicians on both sides jockeying early for a chance to secure the nomination, it feels like the elections are already upon us. With over a year to go for the presidential election, we’d advise you to buckle up – because it’s only going to get more intense from here. To note, WrapManager is not taking a political stance with regard to elections – whether Democrats or Republicans control the White House and/or Congress is up to the voters. Our concern is the market and the economy, which while affected by politics, is not wholly controlled by it – there are plenty of other variables to consider. In the past, election outcomes have formed patterns in the stock market, which may offer us clues for what to expect as the race takes shape. We’ll take a look at a few of those below. [+] Read More

Earnings Tumbled - Should You Worry About Your Investment Portfolio?

October 7, 2015
Corporate earnings had a rough go of it in the second quarter—total earnings for S&P 500 companies were down -2.1% from the same period last year, on -3.4% lower revenues.1 It would be one thing if earnings were falling while revenues went up, which would indicate companies may have spent more over the quarter on fixed investments, more hires, or higher wages, for example. But the data clearly shows that top line revenues are falling alongside earnings, which means there could be an issue with softening demand. As you can see from the chart below, earnings also fell from the fourth quarter of 2014 to the first quarter of 2015. With earnings getting weaker as market volatility increases and China worries build, investors may wonder if a more cautious portfolio strategy is warranted from here. [+] Read More