Some Common Cents for February 27th 2015

Applicable as of July 1, 2025: Oakworth Asset Management, LLC (“OAM”) is a registered investment adviser that is owned by Oakworth Capital Bank Inc., Member FDIC (“OCB,” or together with OAM, “Oakworth”). Please note that OCB and OAM are separate entities that provide different services. All investment adviser services including investment management and financial planning are provided by OAM. OAM only began operations on July 1, 2025. Any content that was created prior to that date is specific to OCB and not OAM and is provided for informational purposes only. The statements or opinions expressed in this article do not necessarily reflect the views or opinions of OAM. The article was produced prior to OAM’s registration as an investment adviser and therefore was not reviewed for compliance under the Investment Advisers Act of 1940. OAM believes that the prior content is appropriate because of the similarities in OAM services to OCB services. The individuals involved in the production of OCB content will also be involved in OAM services. For additional information about OAM, including its services and fees, send for the firm’s disclosure brochure using the contact information contained herein or visit advisorinfo.sec.gov.

This morning, the Bureau of Economic Analysis (BEA) announced its second take on 4th Quarter 2014 economic growth. After previously announcing a 2.6% number, it seems the BEA’s best guess this time is it grew at a 2.2% clip. What’s 0.4% among friends?

When you break down the data, several things become readily apparent: 1) military expenditures fell through the floor, and; 2) the private sector appears to be in reasonably healthy shape, and; 3) our net export situation is deteriorating.

The last point, perhaps, bears the most attention. Why? Well, our military expenditures are going to start to go up as we get more embroiled in the Middle East. The question isn’t whether we will have to ship more troops and equipment to Iraq; the question is: just how much more will we have to ship? As such, I fully anticipated military expenditures won’t continue to fall at an annualized 12.4% rate, as it did last quarter  …Read On…

The opinions expressed within this report are those of John Norris as of the initial publication of this blog. They are subject to change without notice, and do not necessarily reflect the views of Oakworth Capital Bank, its directors, shareholders, and employees.