Recently Federal Reserve Chairman, Jerome Powell, said he sees the economy as being “in a good place”.
So, what’s good about the economy? The Bull Market Powers On!
October Jobs report came in at 128,000 new jobs created vs 85,000 expected according to a Bloomberg survey.
GDP rose 1.9% in the 3rd Quarter compared to 2% in the 2nd quarter, stronger than expected with economists forecasting 1.6%.
Consumer sentiment has remained strong with the unemployment rate at a half a century low of 3.6% and wages now growing at a 3% inflation rate.
Consumer spending while moderating to a 2.9% annual rate in the 3rd quarter off from a 4.6% rate in the 2nd quarter still compares favorably to last year’s 3rd quarter rate of 2.5%.
The US housing sector has improved with lower interest rates and according to the US Census Bureau and US Department of Housing and Urban...
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One part of the financial industry that has eaten up a disproportionate amount of headlines in the last few years are IPOs and private equity. Seemingly every week a new, fast growing company makes its debut on the public markets with some having eye-popping share price movements in the market. It’s important to be aware of these companies and the private equity industry as a whole because they do have a ripple effect across the business landscape.
A term that may be heard in tandem with IPOs or venture capital is “Unicorn”. A Unicorn is a private company that is valued at over $1 Billion. A common theme amongst most of these high flying “Unicorns” is that they are fueled by debt and low interest rates. Interest rates are near their historical lows with the ten year government bond yielding sub 2%. Historically, interest rates tend to mean... 
Who doesn’t love FREE? Let’s face it, we all love a good bargain or free item. “Discount Chuck” is looking out for individual investors again, slashing online equity and ETF trading commissions from $4.95 to ZERO, making it even more affordable to invest. Schwab will continue to charge a commission for trading of foreign stocks, fixed-income investments, transaction-fee mutual funds, options, and large block trades that require special handling.
Since 2006, Charles Schwab has been disrupting the brokerage industry by periodically reducing their trading commissions. Revenue will be derived from Schwab’s other business lines like its US Bank (Schwab Bank) and from net interest income. Charles Schwab continues to be a leading provider of financial services with more than $3.72 trillion in client assets as of August 31, 2019. Covington has utilized Charles Schwab as our Custodian of client assets since our inception. We continue to choose Schwab because they... 
