First of all, on the Delta business front: As you can see from our new letterhead and photo, we have upgraded our office to better reflect the dynamic company that we have been for over 30 years. In addition to our office building, we have also added several new veteran professionals to our team. Please visit our recently launched new website, www.deltaadvisory.com, where you can become acquainted with our newest members and projects.
As part of our expansion, we have taken advantage of an opportunity to move our offices to one of Orlando’s premiere professional locations. All of our phone numbers and email addresses remain unchanged, however, there will be new extensions added, so be sure to listen to our complete greeting and directory when calling.
With a team of seasoned professionals, we are excited about the future and confident in our ability to recognize and capitalize on economic trends. Of course, our overriding hope is that it translates into serving our clients in a manner that is second to none.
Now a bit on the Delta market front: The markets started the year with some pretty strong swings in both directions. But, in reality, we’ve only moved slightly higher. Lower oil prices and continued problems in Greece seem to have spooked investors. However, lower oil prices are also causing a surge in global GDP growth. Additionally, our economy continues to show resilience and, we are getting a reasonably good string of jobs numbers. Most of the good news we are getting from the economy seems to be “baked into the pie”. But, we continue to believe our global economies will grind higher which should lead to positive performance in the equity markets over the long-term. In the short-term, the run we have made is starting to look a bit frothy. We could see the markets starting a corrective phase in the not-too-distant future. That said, we continue to believe the equity markets are on sound footing, in a long-term time frame.
The markets have been in a three month trading range, but may be starting to emerge. There are a few global headwinds we are facing but, in reality, they seem to be old issues that have not been fully rectified. New leadership in Greece is causing uncertainty with their desire to restructure their previous austerity deal. Additionally, there is talk of further sanctions on Russia as they have not adhered to the cease-fire agreement.
That said, these issues are ongoing and do not seem to have significant economic effect. Investors now appear to be more focused on the global economies as the news has been relatively encouraging:
1. We have now seen twelve straight months of 200,000+ jobs being created in the US. The number is not that impressive, but the trend is.
2. Construction numbers are booming. With the fresh round of job creation has come a voracious appetite for residential homes.
3. Japan’s Nikkei 225 Index recently extended a 15-year high as the government continues its loose monetary policy.
4. France and Germany both recently showed manufacturing activity that was dramatically ahead of expectations.
There are a number of small brush-fires we are keeping an eye on. However, for now, our economy and our markets are leading the way for the rest of the world. Our biggest concern is what we feel will be a higher rate environment coming in the not-too-distant future.