Monthly Archives: April 2013

Investors on Defensive heading into 1st Quarter Earnings Season

For the first quarter of 2013, defensive sectors were the front runners as Health Care, Consumer Staples and Utilities were top quarterly performers. This took many by surprise as one would tend to believe that more economically sensitive sectors (Ex. Cyclicals) would be out in front of a market that was accelerating higher at a considerable speed. Alexandra Scaggs recently wrote in a Wall Street Journal (WSJ) article entitled, “Stock Rally Strikes a Defensive Tone” that these three sectors are “…relatively insulated from the state of the economy; people will cut back on spending in tight times but not on medication, food or electric bills.” Perhaps this reveals the types of sectors that are positioned to perform better within a “plow-horse economy” or perhaps this is a result of the risk tolerance comfort level of many investors who re-entered the stock market during the first three months of the New Year. To this end, Scaggs wrote in the same WSJ article cited above that some investors seem to be, “…concerned about growth in the U.S. and abroad…searching for investments that will offer steady cash payouts as interest rates remain low.”Read more

Unit Investment Trust (UIT) Assets Top $71 Billion in 2012

According to the Investment Company Institute (ICI), data on the market value of unit investment trusts (UITs) issued and outstanding as of year-end 2012 indicates a total of 5,787 trusts with a value of $71.73 billion.Read more

What to Make of the Dramatic Drop in Gold Prices

As I write this post on April 15, spot Gold prices, according to Bloomberg, settled down approximately 9% for the day (which marks the biggest one day decline since February of 1983) while spot Silver prices were down approximately 12% for the day. Other precious metals, and industrial metals for that matter, have not escaped the recent downward pressure on commodity prices as Platinum, Palladium, Aluminum and Copper also posted losses on April 15. It is worthwhile to note that other Energy and Agriculture commodities are also down for the day.Read more

Our Well Wishes to the Victims of the Boston Marathon Tragedy

Our thoughts and prayers at Hennion & Walsh are with all of individuals and families affected by the senseless tragedy that occurred at the Boston Marathon.Read more

Why Cyprus Matters to Your Investment Portfolio

If you never heard of the small island country in Eastern Europe called Cyprus prior to the last few weeks, you are not alone. The Republic of Cyprus is a popular destination for tourists along the Mediterranean Sea. Cyprus joined the European Union (EU) and the Eurozone in 2004 and 2008 respectively. The majority of their economy, as measured by Gross Domestic Product (GDP) is derived from services from industries such as financial, real estate, and, of course, tourism.Read more