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Investment strategies: Three reasons to use our market commentary

By: Jeff Duesler, Senior Investment Services Representative

The Federal Open Market Committee’s (FOMC) interest rate decisions and predictions have always been fascinating to me. Although things certainly were a bit more exciting at the beginning of my fixed-income career (years ago) when there was a little less telegraphing, less “normalizing” of interest rates, and more moves to cool off a heated-up economy by monetary policy measures, it’s still interesting to follow the FOMC’s plans to nurture an economy into sustainable, long-term growth. I’ve found that one of the best ways to stay abreast of the Fed’s decisions/predictions and the economic climate in general is to peruse daily and/or weekly market commentaries.

Most market commentaries or economic briefings, which are basically just short summaries of facts and opinions relevant to the current state of a certain market or the economy in general, present a lot of data in a condensed, easy-to-read format. For example, if you had read a commentary prior to the FOMC’s meeting this past week, the report would have implied the following:

  • The economy was growing at a fast pace until recently.
  • That pace has been a derailed a bit due to a few factors: a shift in trade policy, a perceived global slow down (probably not independent of the first event), a change in congressional leadership, and, most recently, an almost 40-day government shutdown with the startup only being temporary.
  • If these issues get resolved, the economy certainly can gain some steam again, and we could be expecting two rate hikes from the FOMC this year before summer starts.

In addition to keeping your finger on the pulse of the economy, reading market commentaries on a regular basis can also be useful for the following three reasons:

  • You need up-to-date economic data for a board meeting.
  • You need a quick snapshot of market data/interest rates for forecasting or reporting.
  • You like charts and graphs and deep but easy-to-comprehend commentary and economic information.

One of the more robust market commentaries is actually offered by Corporate One. Easily accessible on our website, a new report is published every Friday, and archived commentaries are included as links on the page.

Check out our most recent Market Commentary.