Commentary

Why are the markets so volatile? We believe there are three basic reasons.

Oil prices continue to be under pressure on concerns about global growth and end user demand. Prices have fallen and energy costs are declining for both consumers and businesses. It is logical to ask what the impact of falling prices might be on the overall economy

Oil prices are dropping and will likely be reflective in gas prices in the very near future. With the United States now producing oil at a record pace, prices are under pressure which is a positive for consumers and businesses. 

With unemployment at multi-decade lows, one might conclude this is all positive for the economy. However, while low unemployment is a positive, it does carry with it some risks that investors need to be aware of.

The Federal Reserve continues to move towards increasing interest rates. The pace of the rate increase will be wholly dependent on the pace of inflation. As it stands now, inflation seems somewhat muted though there are signs that it may be picking up.