Sterling Capital

09.21.2023 • Andrew Richman, CTFA

Fed Reiterates-Higher for Longer

While the Federal Reserve (Fed) met expectations with a pause/skip this meeting, the real story was the upward movement in both the Fed Funds rate this year and next year. The consensus is now for one more 25 basis point hike in 2023 with the Fed funds rate median at 5.60%.

09.07.2023 • Shane Burke

An Updated Look at the FOMC and Yield Curve

An Updated Look at the FOMC and Yield Curve

09.06.2023 • Charles Wittmann, CFA®

The Lead - "Balancing Yield"

- One of the risks in seeking higher dividend yields in non-financial companies can be the increased balance sheet leverage that correlates with higher dividend yield. - For many companies, the cost of this leverage is rising with interest rates, potentially placing pressure on cash flows to pay future dividends as interest expense may take a greater share of corporate cash flow. - We believe that owning stocks with strong balance sheets has the potential to minimize this risk as we endeavor to generate attractive above-average total returns with below-average risk for clients.

08.02.2023 • Andrew Richman, CTFA

Fitch Lowers Long-Term U.S. Debt Rating from AAA to AA+

Fitch Lowers Long-Term U.S. Debt Rating from AAA to AA+

08.01.2023 • Charles Wittmann, CFA®

The Lead - "Long-Term Dividends"

- What are the investing environment conditions that can cause dividend payers to lag on a short-term basis? - Looking back at Bloomberg data over the past twenty years, when dividend payers outperformed the Russell 1000 Value, non-earners underperformed and vice versa (56% of the time). - Over the twenty year period, dividend payer’s quarterly outperformance outweighed underperformance in contrast to non-earners. - In our quest to generate above-average returns with below-average risk for our clients, our approach is to take advantage of the long-term benefits of dividend payers that grow their dividends and seek to create value now and in the future.

07.25.2023 • Andrew DiZio, CFA®

Real Estate Returns Following Fed Rate Hike Cycles

Over the last 15 months, the Federal Reserve (Fed) has meaningfully raised the benchmark fed funds rate in an effort to tamp down inflation. The Fed paused its hiking campaign during the June meeting, but issued an outlook suggesting additional rate increases are to be expected. Regardless of whether the Fed has finished raising rates, we believe the end of the tightening cycle is near and view now as a prudent time to examine the performance of Real Estate Investment Trust (REIT) stocks following historical periods of fed funds increases.