Notes

That is the term used by professors of finance to describe “an event outside the economic system that affects its course.”  Just last week, we experienced one.

Have the currency markets stabilized? Below is a chart of the value of the U.S. dollar compared to a basket of international currencies. US Dollar Currency Index (DXY)

Despite a decent performance by the U.S. economy, the stock market turned in lackluster results in 2015. The unemployment rate dropped to levels not seen since before the financial panic of 2008/2009. Real GDP growth for 2015 chugged along at a steady, though unspectacular rate of about 2¼ percent. Real estate values continued to recover from the big sell-off.

Equity markets took a beating during the third quarter of 2015, losing 6.9% as measured by the S&P 500 Index. Worries about the possible effects of China’s economic slowdown caused investors to shun stocks and seek safer assets such as U.S. government debt.

The healthcare sector remains one of the most promising areas for investing and should occupy a prominent place in most stock portfolios. Over the past ten years, healthcare stocks have significantly outperformed the overall market as shown by the graph below.