Call Us Today! 1-503-452-1210 | 1-888-755-6546|E-mail:
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.

Economic Growth Slows; Bernanke Takes Congress To Task

William RutherfordPublished September 9, 2011
After rolling through Labor Day, we continue to have high unemployment. It’s at 9.1 percent, and even President Obama says it will remain high through 2012. If so, Republicans are salivating over the opportunity to retire the president after only one term.

The pundits already are expecting Republicans to gain enough seats to take control of the Senate. Because of Democrats’ large victory in 2006, they have about twice as many seats to defend as Republicans. This gives the Republicans a big advantage going into the elections, so it is their election to lose.

As if high unemployment wasn’t enough bad news, housing starts have been moribund, the Philly Fed index fell to its lowest level since March 2009 – the recent market bottom. The consumer confidence index tumbled as well, to its lowest level since April 2009; the drop was far bigger than anticipated. As the global economy slows, and fears of the European debt crisis continue, worries over another
recession have put a damper on the markets. According to David Kelly, chief market strategist at JP
Morgan Funds, “… the market is an engine flooded with liquidity but without a spark.”

Economic growth is surely slowing not only in the U.S. but globally as well. Economic forecasters are
expecting GDP to grow from 1.5 percent to 2.9 percent next year. At 1.5 percent, we are not in a
recession; however, it will feel a lot like one. Employment really needs GDP growth of 2.5 percent to
reduce unemployment.

What will the market do between now and the end of 2011? As always, the pundits are divided. While
the case can be made for the S&P of […]

September 14th, 2011|Categories: Daily Journal of Commerce|Tags: , , , , |Comments Off on Economic Growth Slows; Bernanke Takes Congress To Task

A Slow Economic Recovery Puts More Focus On Elections

William RutherfordLast month’s column, “Is there any good news among the grim?,” cited several instances of progress on the economic front. April has brought more good news, among still grim employment numbers.

The gross domestic product increased 3.2 percent last quarter. Though positive, the number was smaller than expected and barely maintained the jobs necessary to keep unemployment at current levels. GDP needs to grow at least 5 percent to make a dent in unemployment. But even as unemployment remained stubbornly high, new applications for unemployment declined. President Obama said the economy must create more jobs.

The GDP rate is growing slower than after previous recessions. The increase in GDP was largely due more to restoring inventory balances than end-point sales.

The Conference Board’s Leading Economic Index increased for the third straight month. Ken Goldstein,
economist at The Conference Board, said, “The indicators point to a slow recovery that should continue over
the next few months. The leading, coincident and lagging series are rising. Strength of demand remains the big question going forward.” Also, the Conference Board’s Consumer Confidence Index, which had rebounded in March, continued to increase in April.

Inflation remained subdued. The Federal Open Market Committee kept interest rates low and indicated that
they would remain low for an extended period. Clearly the Fed believes that any recovery we are seeing needs more time to gather strength.

The housing market sputtered after an uptick resulting from federal tax credits for new home purchases. As
soon as the credit expired, the market slumped.

The FDIC says that only 200 banks will fail this year, down from their earlier forecast of 300 bank failures.

Equity markets showed strength for the year to date, even […]

May 11th, 2010|Categories: Daily Journal of Commerce|Tags: , , , , |Comments Off on A Slow Economic Recovery Puts More Focus On Elections

Market Update

Yesterday the market just had its second largest up day ever; up 889 points. This rise came in spite of historical lows in the consumer confidence index (backward looking and volatile) and a nationwide drop in home prices of 16.6% (a real threat to the economy). The Fed is yet to weigh in with a rate cut which will almost certainly happen today. In the meantime, the Fed has increased the money supply by 25% in the last three weeks, a truly astonishing number.  The rally occurred toward the end of the day, with banks stocks getting a big lift in the last two minutes of trading. No doubt this was short covering and therefore not a sustainable rally.  Volume was very heavy (a good sign).

I do not know if this is the market bottom, although the October 13 bottom has now been tested twice and held both times.  I frankly expect at least one more test of the bottom, and of course any more BIG bad news could send the market lower.  (There is plenty of bad news in the market valuation already, news that a few weeks ago would have been considered big bad news, but has now become commonplace-the market has become inured to a degree). […]

October 29th, 2008|Categories: Comments from Bill|Tags: , , , , , |Comments Off on Market Update
Go to Top