The latest issue of the Iacono Research Weekend Update has been posted to the website and is now available for subscribers here. There will be no changes to the model portfolio or the buy ratings this week, but developments from last week as they relate to financial markets are reviewed in the following discussion topic:
The executive summary is as follows:
A surprisingly strong labor report and other positive economic data in the U.S. combined with very dovish comments from multiple Federal Reserve officials, including Fed Chief Janet Yellen, to send U.S. equity markets to record highs. Treasuries fell and the U.S. dollar rebounded as investors around the world were emboldened to bid prices higher amid ongoing violence in the Middle East that has now spread to Israel.
Though most related shares moved higher, commodity prices had their worst week in the last five as prices for both energy products and agricultural goods tumbled. Metals were the notable exception in the natural resource sector and mining stocks saw more gains, adding to their impressive 2014 performance after a dismal 2013. For the week, the model portfolio rose 0.8 percent and is now up 9.2 percent for the year.