Bill Rutherford Quoted In Business Week

Are Investors Ready for Higher Interest Rates?

If the economy keeps growing, it hastens the day when the Federal Reserve ends the era of 0% interest rates

By Ben Steverman

Data showing the U.S. economy is growing again has renewed the debate about where interest rates are headed—a question with big implications for both the economy and investors.

The U.S. gross domestic product report released Oct. 29 showed that the economy grew by 3.5% last quarter, a higher percentage than many were expecting, and fixed-income markets took it as a sign that a rate increase will happen sooner. Treasury prices fell after the release of the GDP figure, and the yield on 10-year U.S. Treasuries rose 0.08 points to 3.5%.

That’s still a historically low rate, reflecting the fact that the Federal Reserve is holding the short-term federal funds rate near zero in order to stimulate the economy. It’s the reason why yields on bank savings and money market accounts are so paltry.

Such low rates aren’t sustainable for long periods of time out of fear, among other things, that low rates can overheat the economy, spark inflation, or drastically devalue the U.S. dollar. “At some point the Fed needs to be thinking about tightening monetary policy,” says Villanova School of Business economics professor Victor Li. […]

October 30th, 2009|Categories: Bill Quoted|0 Comments

Bill Rutherford Quoted In Business Week

Gene Marcial’s Stock Picks October 20, 2009, 7:23PM EST

Marcial: Jos. A Bank Is Dressed for Success

The menswear company’s stock is soaring as investors admire its strong expense controls, savvy promotions, robust sales, and comfortable cash cushion

By Gene Marcial

Who says menswear is boring and unappreciated? Not Jos. A. Bank Clothiers (JOSB), which designs, makes, and sells apparel for men and boys, from underwear to formal wear, through its 460 retail stores in 42 states, the Internet, and its nationwide catalog. And on Wall Street, Jos. A. Bank is sought after not only as a sartorial mainstay but also for the allure of its shares, which have soared from a 52-week low of 15 a share on Nov. 21, 2008, to 46 on Oct. 20. The last time it traded this high was in 2007.

“Sales of men’s clothing have been brisk, and Jos. A. Bank has done a terrific job selling them in a tough economic environment,” says William Rutherford, president of Rutherford Investment Management, which owns shares. Same-store sales are rising, with yearly total sales up about 11%, says Rutherford. He expects the stock to pile up more gains as sales and earnings continue to accelerate. […]

October 21st, 2009|Categories: Bill Quoted|0 Comments

Bill Rutherford Quoted In American Banker

Monday’s Bank Stock Wrap
Markets Rebound After a Down Week

American Banker  |  Posted Tuesday, September 29, 2009

Banking stocks rebounded along with the rest of the market Monday from last week’s sharp selloff.

The KBW Bank Index closed up 2.84%, at 47.43.

The index slid about 3.29% last week as investors reacted to some negative financial reports concerning home sales and durable goods orders.

William D. Rutherford, who runs a private investment firm in Portland, Ore., described the lull as “healthy and constructive.”

“It’s good for the markets to have a little realism once in a while because we had such a run,” he said. Monday’s gains indicated “renewed optimism” about next month’s earnings reports. […]

September 29th, 2009|Categories: Bill Quoted|0 Comments

Bill Rutherford Quoted In BusinessWeek

BusinessWeek (Investing Section): September 23, 2009

http://www.businessweek.com/investor/content/sep2009/pi20090923_783858.htm

CEOs and the Pay-for-Performance Puzzle
Many shareholders and corporate boards agree that our system of paying CEOs is broken. How best to reward good corporate chiefs and discourage bad ones?

By Ben Steverman

A highly skilled CEO is hard to find. Highly paid CEOs, however, are everywhere you look.

For decades, corporate boards, watchdogs, regulators, and shareholders have argued over the best way to reward corporate leaders for a job well done, while not overpaying mediocre chief executives.

They might not be any closer to solving this pay-for-performance puzzle. But, the extent of the financial crisis and recession has made the problem clear.

The public and politicians have noticed the huge severance packages for executives resigning for poor performance, or the billions of dollars in bonuses awarded just months before financial firms collapsed. […]

September 23rd, 2009|Categories: Bill Quoted|0 Comments

Bill Rutherford Quoted In AP Article

Productivity gains in 2Q due mainly to cost cuts

http://news.yahoo.com/s/ap/20090902/ap_on_bi_ge/us_economy_18

By MARTIN CRUTSINGER, Ap Economics Writer

WASHINGTON – Companies managed to boost their workers’ productivity and their own profits in the spring mainly by slashing costs and capping their employees’ pay.

That was clear from revised government figures released Wednesday that provided further evidence that a tentative economic recovery has begun, while also reinforcing nagging concerns. Analysts worry the tight job market and lack of wage growth will depress incomes, limit further corporate profitability and forestall a pickup in all-important consumer spending.

Bill Schultz, chief investment officer at McQueen, Ball & Associates in Bethlehem, Pa., said companies that have shed workers and squeezed out savings won’t be able to show the big profit gains they did last quarter by relying on more big cuts. Having already made deep reductions, companies will need to find ways to generate more revenue.

“Profits have recovered nicely, but it’s more the way that they have recovered that gives people pause,” Schultz said. “The key is to somehow blend this cost-cutting with revenue growth.”

Productivity — the amount of output per hour of work — rose at an annual rate of 6.6 percent in the April-June quarter, the Labor Department said. That’s the largest advance since the summer of 2003. And it’s slightly better than the 6.4 percent productivity increase the government had estimated last month. […]

September 2nd, 2009|Categories: Bill Quoted|0 Comments

Bill Rutherford Quoted In Dow Jones

Consumer Staples, Health Care Seen As Recessionary Havens

by Mary Ellen Lloyd, Dow Jones Newswires; 704-948-9145; maryellen.lloyd@dowjones.com

A year into the U.S. recession, the smart money on Wall Street says traditionally defensive sectors such as consumer staples, health care and telecommunications remain among the best bets.

That’s because it is businesses like drugstores, food producers, managed-care companies, and beer and cigarette makers that tend to do well despite tough economic times, according to several market strategists, money managers, economists and fund data managers.

“You’re dealing with industries and companies that provide necessities – everything from toothpaste to stents to pharmaceuticals to cereal,” said Brian Belski, Merrill Lynch’s U.S. sector strategist.

And some not-so-basic items can feel like necessary luxuries for folks during times of stress. “People tend to drink and smoke more during recessions and slowing times in the economy and the stock market,” Belski said. […]

Bill Rutherford Quoted In Business Week

Inside Wall Street: Bring on the Cranes and Road Graders by Gene Marcial

http://www.businessweek.com/magazine/content/08_48/c4110insidewal446718.htm

The Dow Jones industrial average has plunged some 41% since its record close at 14,164 on Oct. 9, 2007—for a $1.7 trillion loss in market capitalization. And the broader Dow Jones Wilshire 5000-stock index has lost 46%, or $9.1 trillion. The huge sell-off is causing some strategists to figure that the market has already priced in a recession. Not only that, “it also has posted the worst performance entering a recession in over 60 years,” notes Jeffrey Kleintop, chief market strategist at LPL Financial. While volatility is likely to continue, history suggests additional significant downside is unlikely. “The stage is set for an eventual recovery, led by the early cyclical sectors,” predicts Kleintop. It’s well-known, he adds, that powerful gains in the stock market come well before the end of a recession. […]

Bill Rutherford Quoted By CNNMoney.com

CNNMoney.com

Dow sheds 486 points: Post-election worries about the weak economy are front and center.

by Alexandra Twin, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) — Stocks fell sharply Wednesday, with the Dow sliding as much as 513 points, as Barack Obama’s historic victory gave way to renewed worries about the struggling economy.

The Dow Jones industrial average (INDU) lost 486 points or 5%. The blue-chip average lost as much as 513 points earlier. The Standard & Poor’s 500 (SPX) index lost 5.3% and the Nasdaq composite (COMP) gave up 5.5%.

Investors were taking a classic “buy the rumor, sell the news” response to President-elect Barack Obama’s victory over John McCain, said Bill Stone, chief investment strategist at PNC Financial Services Group. […]

Bill Rutherford Quoted In Barron’s

Earnings Estimates Still Too Lofty

By JOHANNA BENNETT

WHILE WALL STREET’S OUTLOOK for corporate earnings has grown more bearish by the day, the estimates are still not grisly enough.

Analysts have sharply cut their third-quarter and full-year financial profit estimates for companies in the Standard & Poor’s 500 since the summer, finally giving up on the notion that profits will climb much in 2008.

A poll by Thomson Reuters shows that the Street expects earnings to fall 2.3% in the quarter ending Tuesday from a year earlier. For the entire year, profits are expected to remain flat, a big change from the 6.7% gain analysts had forecast in July.

But some are skeptical about even those modest expectations and expect earnings to be down this year by as much as 8%. And there’s little confidence that the 22% gains predicted in 2009 will materialize given the uncertain economy, falling oil prices and the turmoil plaguing financial markets. […]

Bill Rutherford Quoted By MarketWatch.com

Beyond the pail: Where to invest in a post-bailout world

by Jonathan Burton, MarketWatch

SAN FRANCISCO (MarketWatch) — Wall Street is bound to get its bailout, in one form or another. The government’s rescue package will be costly to taxpayers, politically controversial — and quite possibly not the last. It will also dramatically change the landscape for U.S. stock investors.

The bailout has a singular task: to grease the locked wheels of the financial system and get credit moving again. What investors need to remember is that even if this plan works, the deep problems plaguing homeowners, consumers and the broader economy won’t magically disappear. The Troubled Asset Relief Plan isn’t called TARP for no reason. It is intended to avert a flood of Depression-era size, but the ground around us will still be soaked. […]