Covenant Weekly Market Synopsis for December 14, 2018

December 17, 2018

Christmas is a time when kids tell Santa what they want and adults pay for it. Deficits are when adults tell the government what they want and their kids pay for it. – Richard Lamm Last Week Today: November’s budget deficit was the largest on record for the US at $205 billion (vs. $129 billion […]

Covenant’s Weekly Market Synopsis for December 7, 2018

December 10, 2018

Last Week Today. After HSBC’s anti-money laundering compliance group reported a series of suspicious financial transactions, China-based Huawei Co.’s CFO was arrested for alleged violations of US sanctions on Iran. Her arrest came only days after presidents Trump and Jinping’s described their trade talks as successful. | Over the weekend, China summoned the Canadian envoy […]

Covenant Weekly Market Synopsis for November 30, 2018

December 3, 2018

Last Week Today. The first of two revisions for Q3 GDP matched expectations of 3.5% and was unchanged from the original estimate. The trailing four-quarter GDP growth average is 3% – well above the 2.1% trend since the Financial Crisis, but likely heading back to trend once the effects of fiscal stimulus fade in 2019. […]

Covenant Weekly Market Synopsis for November 23, 2018

November 26, 2018

In a holiday-shortened week, we diverge from our usual Market Synopsis format to focus on two investment assets making the majority of headlines: equities and crude oil. Equity Market Update. There was not much to be thankful for last week in the land of risk assets, particularly in the US: S&P 500: -3.8% / -2.74% […]

Covenant Weekly Market Synopsis for November 9, 2018

November 12, 2018

“For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” – Winston Churchill Last Week Today. The results of the midterm elections, while exciting in certain local races, concluded as expected at the national level with a divided […]

Covenant Weekly Market Synopsis for October 26, 2018

October 29, 2018

Last Week Today: Saudi Arabia pledged to eliminate any oil shortage from Iranian sanctions by pushing up production from 10.7 million to 11 million barrels per day. | MBS, Saudi’s crown prince called Khashoggi’s murder “heinous”; two days later, Saudi Arabia admitted the murder was premeditated – and the worst cover-up in history continued to […]

Covenant Weekly Market Synopsis for October 19, 2018

October 22, 2018

Last Week Today: The U.S. budget deficit jumped from $665.8 billion in 2017 to $779.0 billion in 2018 (3.9% of GDP) as spending increased by 3.2%, but tax receipts only rose by 0.4%. | The Job Opening and Labor Turnover (JOLT) survey for August revealed a record 7.1 million job openings – there are only […]

Covenant Weekly Market Synopsis for October 12, 2018

October 15, 2018

Last Week Today: Q3 Earnings season kicked off last week, with 47 companies posting results. Overall, the earnings reports were OK, but macroeconomic concerns swamped earnings reports, driving markets down. Earnings season really gets rolling this week, with nearly 200 companies scheduled to report. After a smattering of negative preannouncements, investors are keen to learn […]

Covenant Weekly Market Synopsis for October 5, 2018

October 8, 2018

Last Week Today: Italy’s anti-establishment government announced a budget with a deficit of 2.4%, pushing back against the European Union’s warnings for Italy to shore up its finances. | Fed Chair Jerome Powell remarked “The US is experiencing a remarkably positive set of economic circumstances…We’re a long way from neutral Fed Funds at this point, […]

Covenant Weekly Market Synopsis for September 28, 2018

October 1, 2018

Last Week Today: China pushed back from the negotiating table, snubbing additional trade talks with the U.S. (at least for now). | Key OPEC members Russia and Saudi Arabia dismissed U.S. requests for output increases to combat rising oil prices. | The Fed raised interest rates for the eighth time this cycle, to 2.25% and […]