Masthead Graphic
3rd Quarter Market Update 2019 

 

Our 3rd Quarter Market Update reveals current market nervousness but with signs for positive growth in the long-term. 

Dividends remain investor's best bet to hedge against the current uncertainty.  

Read on to learn more.

Warm regards,
  Signature
Catherine Maniscalco Avery
 
The backbone of CAIM is to employ a classic long term investment strategy including dividend paying stocks. CAIM is an independent, women owned investment management firm specializing in managing investment portfolios for women and baby boomers.

203.717.1850  p
203.717.1851  f 


October 28, 2019  Issue No. 106
In This Issue
3rd Quarter Market Update 2019
Dividends For an Uncertain World
CAIM Joins UN Supported PRI Global Network
Quick Links
Find Out More
Call me at 203.717.1850
or visit www.caimllc.com .

 

3rd Quarter Market Update 2019
 
 
After a strong first half, the markets are once again showing signs of nervousness.   The fears are not new:  trade war tensions between the U.S. and China, geopolitical issues in Iran, as well as concerns about global growth.  With all this news swirling, the Fed followed in the footsteps of the European Union and cut interest rates, twice.   These rate cuts should have helped with the volatility but most of the benefits from the announcement were realized in the second quarter.   Instead the market seemed to focus more on what could happen next year. 
 
As of now, earnings are expected to increase 10% in 2020, but with a decline in business confidence and manufacturing indexes moving lower, investors seem doubtful that that level of growth is achievable.
 
Dividend Growth Still Strong
The good news is even with the uncertainly around next year's growth, dividend growth remained strong in the quarter.  And while only 3 of our names had increases this quarter, 95% of our holdings have seen an average increase of 10% year to date versus 6% for the SP 500.  
 
As interest rates continue to drop (we foresee another one or two cuts to come), the search for yield returns. As of September 30, 2019, CAIM's portfolio yields 2.9%.  This is significantly higher than the 10 year Treasury yield of 1.7% and the SP 500 yield of 1.87%, as shown graphically below.
 

 
Moving Forward
The lack of business confidence is starting to affect consumer confidence.   All the headline news about trade wars, along with the uncertainty surrounding the outcome of the Presidential election next year, has caused people to question the stability of jobs and income growth.  We have had good employment growth this year, but need governments and countries need to start working together to help consumers feel more secure.
 
In summary, while we remain positive on the markets for the long term, we also believe volatility remains in the near future.  
 
As always we advise clients to keep 1-2 years of cash needs in CDs, money funds or very short term treasuries.  Our portfolios can help clients with both growth and income needs over the next 3-5 years.
 

Dividend Paying Stocks For an Uncertain World - Still
 
Dividend paying stocks have long been the backbone of our investments at CAIM.  Our mission is to meet our client's long-term investment goals through... Read more  
 
separator
CAIM Joins UN Supported PRI Global Network 
 
CAIM is proud to announce that we have become a signatory to The United Nations Principles for Responsible Investment (PRI.)  The UN-supported PRI is a... 
separator
┬ęCopyright 2019, CAIM LLC

Disclaimer: NO CONTENT PUBLISHED AS PART OF THE CAIM LLC NEWSLETTER CONSTITUTES A RECOMMENDATION THAT ANY PARTICULAR INVESTMENT, SECURITY, PORTFOLIO OF SECURITIES, TRANSACTION OR INVESTMENT STRATEGY IS SUITABLE FOR ANY SPECIFIC PERSON.  TO THE EXTENT ANY OF THE CONTENT PUBLISHED AS PART OF THE BLOG MAY BE DEEMED TO BE INVESTMENT ADVICE, SUCH INFORMATION IS IMPERSONAL AND MAY NOT NECESSARILY MEET THE OBJECTIVES OR NEEDS OF ANY SPECIFIC INDIVIDUAL OR ACCOUNT, OR BE SUITABLE ADVICE FOR ANY PARTICULAR READER.  EACH READER AGREES AND ACKNOWLEDGES THAT ANY SPECIFIC ADVICE OR INVESTMENT DISCUSSED IN THE BLOG MUST BE INDEPENDENTLY EVALUATED BY THE READER AND HIS OR HER ADVISER IN VIEW OF THE READER'S INVESTMENT NEEDS AND OBJECTIVES.