Call Us Today! 1-503-452-1210 | 1-888-755-6546|E-mail: evaluation@rutherfordinvestment.com
Rutherford Investments Logo

Rutherford Investment Management DOES NOT utilize or conduct business through whatsapp or any other app.  We are not traders or brokers.  We do not open accounts in which you will be making trades. We do not invest in or trade options, Bitcoin, or any other crypto currency.  We conduct business with new clients only after you reach out to us by phone at our main office number: 503-452-1210.  Before we open an account for a new client we go through a detailed paperwork process and have multiple phone conversations and/or in-person meetings. We manage your investments only through accounts that you open, in your name, at established brokerages such as Charles Schwab and Fidelity.  If you are interested in having us manage your investments please call us.

2nd Quarter 2016

This year began with a decided down draft for the markets. An improvident rate increase by the Federal Reserve of 25 basis points in December sent an already weak market into a tailspin. Indeed, the indices dropped nearly ten percent into correction territory, the worst start for the markets in history. The market bottomed this year on February 11 and then began an upward climb. Stocks leading the way were interest- sensitive Utilities, because bond yields had dropped so low. Also strong were the previously beaten down Energy stocks. They recovered on the theory that they had dropped so far that they would not go down further, and were due for a recovery. Although this does not always work as an investment strategy, in this case it did. Despite a slowing growth rate for petroleum worldwide, Energy is up 15.3% for the year through July 12.

Download entire newsletter

By |September 9th, 2016|Categories: Quarterly Client Newsletters|Comments Off on 2nd Quarter 2016

1st Quarter 2016

Uncertainty Prevails. Stay Tuned.

U.S. equity markets hit an all-time high in May of 2015; this occurred after a long recovery from the Great Recession. The recovery was slow and weak. Incomes have barely reached the levels before the Recession. Unemployment rates have returned to about 5%, but are uneven throughout the country. The labor participation rate has only recently begun to recover. Then in May 2015, markets began a decline. A confluence of factors led to the decline. The economy of China began to slow. This slowdown led to a collapse of commodity prices, especially oil, throughout the world. Normally lower oil prices would be considered good news, a tax cut really. But in this case, the drop was so significant and rapid, that producers were caught off guard. Commodity producers of all kinds had expected the Chinese economy to continue to grow; they invested and created overcapacity. In the case of oil, the U.S. became a net exporter, which had not been the case for decades. Emerging markets began to falter. Banks were under pressure again. Equity markets decided to steer clear of all this risk. Central banks throughout the world cut interest rates, some into negative territory. Currencies […]

By |September 9th, 2016|Categories: Quarterly Client Newsletters|Comments Off on 1st Quarter 2016

4th Quarter 2015

Of Sheiks and Shale

”None of the postwar expansions died of old age; they were all murdered by the Fed.”
-Rudi Dornbusch, MIT economist

In May 2015, the markets hit an all-time high. By August the markets were down 11%. The decline was due to an apparent slowing in the Chinese economy and a surprise devaluation of the yuan by China. While the Chinese economy, the second largest in the world, appeared to be slowing, confirmation was hard to obtain owing to the opaque nature of Chinese economic reporting. But, there was no mistaking the yuan devaluation; it caught everyone by surprise. Another sign that the Chinese economy was slowing was the decline in commodity purchases by China. Lacking many resources, China is a big buyer of commodities on the world stage, and producers were definitely seeing a slowing of purchases. With the yuan falling and commodities weakening, Chinese investors began to pull money from their markets and move money out of China. Companies did the same. The Chinese equity markets tumbled. This upheaval was felt throughout the world, as prices of commodities fell sharply. Extraction of natural resources, except for oil, was cut back. The price of oil fell dramatically.

[…]

By |January 21st, 2016|Categories: Quarterly Client Newsletters|Comments Off on 4th Quarter 2015

Market Opens Year With The Worst Start Ever

Dow down 10% from its all-time high set in May of 2015

Is it time to panic?

A start to the year like we are having is attention grabbing. We have seen these events before and will see them again. You know Rutherford Investment Management as a long term investor and that has served our clients well over the years.

The markets and the economy were weak at the end of 2015 and getting weaker. The international monetary fund warned that the global economy was weakening; indeed they just downgraded global economic growth. The U.S. was finishing its 11th year of sub 3% growth. But on December 16, 2015, the Federal Reserve, citing an improving economy and incipient inflation, raised interest rates by 0.25 %, the first increase since June 2006.

To say they were backed into a corner would be polite. They had cornered themselves, by hawkish comments. If they had not raised rates, they would have lost credibility, but, at the end of the day, they had missed their opportunity and waited too long. By December, the U.S. and the global economies were slowing. No amount of gloss could make this sow’s ear a silk purse.

Almost immediately after the rate increase, the […]

By |January 13th, 2016|Categories: Comments from Bill|Comments Off on Market Opens Year With The Worst Start Ever

3rd Quarter 2015

More Uncertainty
In March of this year the markets were hitting new highs. All indices shared in the festivities. The unemployment rate dropped to nearly 5%. Oil prices dropped too, giving hope to the consumer economy and diminishing inflation expectations, as inflation all but disappeared. In general, the outlook for the economy was positive. Then, slowly, the outlook began to change.

The International Monetary Fund spoke frequently of the declining outlook for the global economy. We had noted that previously, and we moved our money back to the U.S., saying the U.S. was the “best house on a bad block”. Commodity prices, other than oil, began to decline in response to China’s slowing growth rate.

Download the entire Newsletter

By |January 11th, 2016|Categories: Quarterly Client Newsletters|Comments Off on 3rd Quarter 2015

2nd Quarter 2015

June Swoon

S&P Quarterly results were plus 0.3% through June 30, 2015. Year to date results were positive 1.2% through June 30, 2015. Year to date the market has been volatile, barely holding on to gains for the year. Volatility will continue. Upward moves during the first half were later given up over geopolitical concerns.

At home, GDP growth has been slow, profits so-so and the markets have just not had the catalyst for gains. Headlines have complicated matters. The long dance regarding interest rates has teased investors. Overseas, Greece and China have loomed large. Each time Greece has appeared about to default or leave the Eurozone, or both, the markets have reacted negatively. Each time it appeared a deal between Greece and its creditors might be imminent, the market reacted positively.

Download the entire Newsletter

By |July 22nd, 2015|Categories: Quarterly Client Newsletters|Comments Off on 2nd Quarter 2015
Go to Top