What Can We Learn from the Headlines?

Written by Andy Pratt, CFA on .

When in the midst of a stock market selloff I like to go back and read the headlines from recent market corrections.  There are many measured, reasonable takes but headlines exist to grab attention and often do a good job describing what it felt like to be in the middle of the selloff.

In August 2015, oil prices were cratering and companies were in the middle a protracted earnings recession. It didn’t seem like the fall in corporate earnings was going to reverse any time soon and no one knew if the Federal Reserve was about to start pumping the brakes on the economy. The fall in stock prices felt justified.

201508 Headline

Stocks are up 33% since.

The Economy Can Only Grow So Fast

Written by Andy Pratt, CFA on .

Today, the Bureau of Labor Statistics released its monthly “Employment Report” that showed the U.S. added jobs for the 86th consecutive month and unemployment remained in the range of full employment at 4.1%.  While the recovery out of the Great Recession was slow, we are currently beyond the recovery phase and into the expansion phase. Just this past month, the economy finally hit a major milestone, reaching its potential growth rate after an output gap that lasted for nine years.

Economists measure the economic health of a country through a measure of economic growth called GDP. In advanced economies like the U.S. where the total level of GDP per capita is already high, potential GDP growth is limited compared to developing countries where productivity gains through better technology and infrastructure are still being implemented.  The CBO estimates potential GDP, revising estimates as new information about the labor force and productivity become available. Long-term, this growth rate is estimated at 1.8%.

November Size and Style Update

Written by Alex Shen, CFA and Andy Pratt, CFA on .

Value stocks turned back in favor in November as the Senate passed a tax bill proposing lower corporate taxes and more favorable tax treatment to income earned abroad. Companies in Value oriented sectors, like Consumer Staples and Financials, tend to pay higher tax rates than companies in Growth oriented sectors, like Information Technology, and, as a result, stand to benefit most from corporate tax reform. Despite this, Growth stocks have still outperformed year-to-date and remain the long-term trend.

InvestmentNews names the financial advice industry's 2017 “Best Practices”

Written by Burney Company on .

StandardLogo BP AwardWinner logo copy
October 17, 2017, Boston, Mass. – InvestmentNews today named The Burney Company (Burney Company Investment Management) a winner of the 2017 Best Practices Awards, an important initiative that recognizes the top-performing and most innovative firms in the financial advice industry.

The winners of the InvestmentNews Best Practices Awards were identified through their participation in the 2017 Adviser Compensation & Staffing and the 2017 Adviser Technology Study. The winning firms were officially recognized today at InvestmentNews’ Best Practices Award and Workshop, which was hosted at The Colonnade Hotel in Boston.

"The Best Practices winners are some of the most strategic and successful firms in the advice business," said Mark Bruno, associate publisher at InvestmentNews and head of InvestmentNews Research. "Their leaders have a clear plan and vision for growing their firms and managing elite organizations. Acknowledging their accomplishments and telling their stories will help educate, inform and influence the growth of the overall industry.”

To identify the 2017 Best Practices Award winners, InvestmentNews Research created composite scores that examined several key metrics from its core benchmarking studies – including a firm’s rate of growth, profitability and productivity level. The data was obtained from over 700 independent advisory firms that participated in the 2017 Adviser Compensation & Staffing Study and the 2017 Adviser Technology Study. The “Best Practices” were those who ranked among the top-quartile of all participants; in addition, the final firms were selected after qualitative interviews conducted by the InvestmentNews Best Practices Committee.

September Market Update

Written by Andy Pratt, CFA on .

In what has been a year dominated by large tech stocks – Apple, Google, Amazon, etc. – September was a good month for Size and Style underdogs as Small-cap stocks outperformed Large-caps and Value stocks held the edge over Growth stocks. Earlier we noted how stocks were not participating in this year’s stock rally evenly and, while this is still true to some extent – even after this month, Value stocks have only returned half of what Growth returned – the gap between smaller and larger companies shrunk significantly.

September 2017 SS