August 5, 2016—Total nonfarm job growth in July came in at 255,000, well above the Bloomberg consensus and beating even the greatest of expectations. In addition, upward revisions to May and June brought those months up by a combined 18,000. Although the strong growth is quite welcome, we don’t expect the robust figures to continue because of the tightness in the labor market, as we have been noting for quite some time. The unemployment rate was unchanged at 4.9%.
August 3, 2016—In the early days of the Affordable Care Act (ACA), conventional wisdom held that by this time—six years after its passage—hospitals would be well down the road in their transition from fee-for-service payment models to value-based, population health models. Stressors from that shift would be evident in hospital financial performance as would the effects of cuts in Medicare payments.
July 29, 2016—Our Investment Committee (IC) decided this week to close the underweight to emerging markets (EM) equities we had initially adopted in 2013. Our clients have benefited from this underweight, as EM equities had generally underperformed broad international and global stock market indices.