Monthly Archives: January 2014

Endowment Wealth Management-Weekly Market Update as of January 31, 2014 by Prateek Mehrotra

Weekly Market Highlights: •Domestic stock prices ended the week lower. Stock prices were buffeted by a sell-off in emerging markets currencies and disappointing earnings news this week, as the S&P 500 posted its third consecutive weekly loss. Emerging markets have had difficulty in the face of the Fed’s decision to taper its bond-purchase program, which removes liquidity from the system, and most impacts developing economies. •Global markets were uniformly lower for the week. World ma...

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Number of the Day: 1/30/2014

1,200 That is how many pounds our ice sculpture of NFL Commissioner Roger Goodell weighs. Preparing for the first outdoor cold-weather Super Bowl this weekend, our sports department is employing a creative method to help fans gauge how much they will need to bundle up. The more layers Mr. Goodell's icy replica sheds, the more layers eventgoers can shed. You can follow the sculpture on Twitter @frozenroger. (Source: Wall Street Journal)...

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Cap Rates decline in 2013

Capitalization rates, used by real-estate investors to measure the annual return of income-producing properties, declined for many property types in 2013, according to data from Real Capital Analytics in New York. Meanwhile, the spread between cap rates and yields on 10-year Treasury notes narrowed. The average cap rate for all property types was 6.74% last year, down from 6.76% in 2012. Cap rates fell fastest for office buildings, which had an average cap rate of 6.93% in 2013 compared with 7.1...

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Average S&P 500 TTM PE vs. CPI

  Equity valuations are still reasonable, especially when considering the inflation environment. Historically, inflation between 0%-2% (CPI is currently running at 1.2% year over year) has been a sweet spot for valuations. Even inflation readings up to 4% have been supportive for valuations. Concerns for multiples would arise if we see either deflation or inflation greater than 4%. (Sources: Strategas Research Partners, LLC &  Brinker Capital, Inc.)...

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Endowment Wealth Management-Weekly Market Update as of January 24, 2014 by Prateek Mehrotra

Weekly Market Highlights: Domestic stock prices retreated this week. Stock prices took a dive this week amid a sell-off in emerging markets currencies, which suffered their worst losses in five years yesterday. Tapering of the Fed’s quantitative easing program is cited as the primary culprit, as many developing economies may now see slower growth. The Dow Industrials posted one of its worst weekly declines since 2012. Global markets were also lower for the week. World markets also re...

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