Investing with Insight
At Appleton, we value active engagement and interaction with financial advisors and clients. Investing with insight helps us meet client objectives. And by sharing our economic and market perspectives, we foster deeper relationships. Here’s what we’re talking about this month.
Review and Outlook
"A common theme in recent client conversations is that the economic risks we currently see in the markets aren’t simply the size of announced tariffs or widespread federal layoffs per se. Rather, it’s the amount of uncertainty both have created and the impact it’s having on consumer and business behavior. The news cycle has been moving far faster than economic releases, but we are seeing the effects of these announcements..."
"While at the start of February, it was possible to tune out Washington and focus on fundamentals, by the beginning of March, that was no longer the case. There are a number of developing trends here we see as meaningful to investors..."
"While news coming out of Washington dominated the financial press in the second half of January, it shouldn’t entirely draw attention from the fact that, at the moment, we have a pretty good economic backdrop..."
Economic and Market Commentary
"The high-grade tax-exempt markets are typically characterized by relative price stability, particularly when contrasted with lower grade credits, let alone equities. But it’s been anything but the case so far in April, as extreme volatility has driven up municipal yields at an unusual pace. Advisors and investors are understandably looking for answers, and we aim to provide some below. The primary driver of this turbulence is a liquidity crunch, which has been exacerbated by the factors noted below..."
"Cutting through the “noise” during times of high market volatility can be challenging but this piece attempts to do so by offering our perspective concerning recent market events, some historical context, and a few forward thoughts. Appleton’s Wealth Managers are available to discuss your personal circumstances, so please reach out..."
"Exchange-Traded Funds, or ETFs, have arguably been one of the most important investment innovations in recent decades. They allow retail investors to combine the modest investment minimum and broad diversification benefits of mutual funds with the real time intra-day liquidity of stocks. Further, ETFs also offer tax efficiency, in part by not requiring a sale of securities (and the potential realization of capital gains) to meet other investors’ withdrawals..."
Quarterly Perspectives
Q1
"Making sense of the economy and markets can be challenging in any era, although today’s environment is proving to be particularly perplexing to many. Context and perspective are critical, as it is all too easy to get lost in the day’s headlines and varying predictions. With apologies to the long running staple of David Letterman’s former “Late Night” show, here is an Appleton “Top 10 List..."
Q4
"Economic developments rarely have isolated impact as one factor affects another. A pandemic-influenced spike in inflation was followed in 2022 by rapid Fed Funds rate increases and an inversion of the US Treasury and AAA Municipal yield curves..."
Q3
"Life is inherently uncertain despite our best efforts to mitigate risk and plan for tomorrow’s eventualities. For many of us, control offers a sense of security, yet the reality is that unexpected events inevitably occur, and personal transitions, however challenging, are sometimes necessary. That’s why Appleton places great emphasis on the human element..."
Tariff Turmoil: Observations and Advice