The conflict in Ukraine has entered a new, more dangerous phase. Russian armored troops crossed the border, opening a new front in the conflict in the process. NATO officials report that approximately 1,000 Russian soldiers have entered Ukraine. Pro-Russian rebels who had been losing ground, have now made gains with newly acquired advanced weapons systems that could only have been supplied by Moscow. This follows failed top-level peace talks between Ukraine and Russia. Read more about Investors Stay Cool as Eastern Europe Heats Up 08-28-14
Yesterday the U.S. Federal Reserve released the minutes from its Federal Open Market Committee’s July meeting. Upon reading those notes, analysts detected a more hawkish tone coming from the central bankers. The key takeaway was that Fed officials “noted that if convergence toward the committee’s objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated.” Read more about Goin’ to Jackson 08-21-14
The selling has extended into today, but the blow has been softened by the July employment report, which adds to the belief that the Federal Reserve will be in no hurry to raise short-term interest rates. While more than 200,000 new jobs were created during the month, the payrolls number came in weaker than expected. Wage growth was likewise less than anticipated.
Stocks were overbought and in need of a correction. Further downward pressure shouldn’t be rule out in the short-term. Still, it’s far too soon to say this is the start of a major correct. Instead, the current dip should prove to be a decent buying opportunity. Inside this issue we look further into recent events and where we’re headed. Read more about A Breather for the Market
Just a few weeks ago investors were fretting about another downturn in Europe’s economy. We, on the other hand, argued that it was far too soon to begin writing off the continent. Sure enough, we’ve since been treated to new data that supports our bullish case. Read more about A Clean Bill of Health 07-24-14