Why Secular Growth Matters, and How We Find It
Growth stocks have lagged cyclicals so far in 2021, but we remain steadfast in our belief that secular growth is the key to generating long-term returns. In this piece, we discuss how we find attractive opportunities in the small cap universe.
Headline Durable Goods Orders Up 2.3% in May
The latest new orders number at 2.3% month-over-month (MoM) was worse than the Investing.com 2.8% estimate. The series is up 41.6% year-over-year (YoY). If we exclude transportation, "core" durable goods was up 0.3% MoM, which was below the Investing.com consensus of 0.8%. The core measure is up 28.3% YoY.
Creative Solutions to Generate Income for Clients
The yield on the benchmark 10-year Treasury note is 1.62%, and that is up approximately 130 basis points from its low of 32 basis points in March of last year. Moreover, the central debate among economists is whether the U.S. faces a new regime of inflation and higher rates, or whether inflation will be only transitory, as the Fed expects. This context of volatility and uncertainty about interest rates makes the job for advisors who want to generate steady income for their clients exceedingly difficult. Here to discuss one solution to that problem is Scott Kefer of Victory Capital.
Weekly Gasoline Prices: WTIC Up 54% Since January
As of June 21, the price of Regular and Premium was down a penny and unchanged, respectively, from the previous week. According to GasBuddy.com, California has the highest average price for Regular at $4.23 and Louisiana has the cheapest at $2.70. The WTIC end-of-day spot price closed at 73.12, up 3.2% from last week and up 54% from the beginning of the year.
Chicago Fed: "Index points to a pickup in economic growth in May"
Led by improvements in production-related indicators, the Chicago Fed National Activity Index (CFNAI) increased to +0.29 in May from –0.09 in April. Three of the four broad categories of indicators used to construct the index made positive contributions in May, and three categories improved from April. The index’s three-month moving average, CFNAI-MA3, rose to +0.81 in May from +0.17 in April.