Yesterday, the Federal Reserve signaled a pause in its increases to the benchmark interest rate.  This is not entirely unexpected, as the Fed had been periodically hiking or pausing for the last three years.  This time, however, Fed Chairman Jerome Powell indicated a likely longer hold. This development falls in line with our assessment of...Read More

In the large, friendly letters of Douglas Adams’ The Hitchhiker’s Guide to the Galaxy, DON’T PANIC.  We are well aware of the dip in bond market values that is reflected in portfolios.  Bond prices move in the opposite direction of yield, so as interest rates rise, the value of existing bonds decreases.  What doesn’t change,...Read More

Despite what seem to be ever-increasing risks in the global economy, the stock market continues to push skyward.  While this may be a sign of economic resilience, it is just as likely to be a sign of people trying to get on board the gains train.  Even those who find the stock market risky, after...Read More

Summertime usually means quieter financial markets, but the recent heat wave and school vacation have done little to temper animation across global markets. May did see a pickup in prepayment speeds, as we discussed in our last update.  30 year mortgage rates have declined in 4 of the last 5 weeks, but remain noticeably higher...Read More

Spring is finally here!  At least, for now it is.  Spring time usually means an uptick in the housing market, as the warm weather and end of the school year entices more people to move.  That means increased prepayments on mortgages, and faster pay down on mortgage-backed bonds like the ones in Cooper Capital portfolios. ...Read More

You may have noticed an increase in stock market activity over the last week.  Since last Friday we’ve seen several major swings in equities in both directions, with the ultimate result being a 10% correction in stock prices.  Some (ourselves included) would say this is long overdue, considering what seemed to be an endless rally...Read More

Many recent articles cite the never-ending stock rally and low jobless rate as indicators of economic health.  But can stock markets really be used as a reliable indicator of, well… anything? Once upon a time, the stock market may have been thoroughly intertwined with economic conditions.  These days, however, stock prices are as likely to...Read More

With good economic news prevailing and comments from several Federal Reserve governors, bets for a rate hike at the next Federal Reserve Open Market Committee meeting have nearly tripled since Tuesday morning.  Currently, the market is close to 90% sure that there will be a 0.25 percent rate increase in mid-March. Indeed, there are fewer...Read More

The Federal Reserve Open Market Committee (FOMC) is unlikely to change short term interest rates as they wrap up their first meeting of 2017 on Wednesday.  While many economic indicators continue to strengthen, markets have already reacted, or over-reacted, to the idea of an improving economy. The so-called “Trump Trade” that began immediately following the Presidential...Read More

Over the last several weeks we’ve seen an uptick in interest rates, particularly in the benchmark ten year Treasury note.  While yields are up (which means prices are down), they are still far from being considered high.  In fact, we are still nearly fifty basis points under where we started 2016.  Even with rates below...Read More