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Trust Newsletters

Winter 2017

Warm winter greetings from all of us at Bath Savings Trust Company! 2016 was a fascinating year in the financial markets. After a long and arduous campaign, stocks took off after the election to reach new all-time highs, while interest rates have been climbing from historic lows. Investors have taken an optimistic stance on the new administration believing that more business friendly policies will be coming in the form of infrastructure spending, tax reform, and less government regulation. More cyclical areas of the market have benefited the most from these anticipated changes in policy, such as financial and industrial companies. Also, energy and other commodity related stocks rebounded sharply last year after an abysmal 2015. Read More

Summer 2016

With the first half of 2016 behind us we would like to bring you up to date on a number of developments both in the financial markets and here at our offices. As always, we begin with a look at the investment landscape. The U.S. stock market has moved sideways for an extended period of time as it continues to digest numerous current events. In June the Federal Reserve decided not to raise short term interest rates. It wasn’t that long ago we anticipated several measured increases in 2016 and so far that has not developed, causing yields to fall to historic lows once more. While the Fed highlighted a downtick in recent economic data as part of their reasoning for holding off, events overseas have weighed as well. In 2015, slowing economic growth in China was the main concern, most recently, the “Brexit” vote caught investors off guard leading to a dramatic 2 day selloff in global stocks. In recent weeks, the market has rebounded sharply to reach new heights as it becomes more apparent that Brexit will be a long process, giving investors more time to better understand what the future of the Eurozone will entail. Increasingly it is felt that this does not appear to be a major drag on global growth. Read More