In October, equities saw increased volatility due to the looming U.S. presidential election and a sudden rise in COVID-19 infections. With only one day left until the U.S. presidential election, many market participants will be glad to have this event in the rear-view mirror. The media has spent the last few years building up the […]
Category Archives: Market Insights
In September equities finally took a breather after reaching all-time highs earlier in the month. As many were expecting, tech stocks led the decline as they have moved significantly higher over the past six months. We view this as a normal market correction and expect stocks to retest their early September highs. Going forward, the […]
August was yet another strong month for equities as investors continued to rotate into the asset class from cash and fixed income. Despite the continued uncertainty from COVID-19 and a looming presidential election, a major policy announcement from the Federal Reserve opened the door for stocks to continue their run higher during the month. On […]
U.S. equities continued to move higher in July despite rapidly rising COVID-19 infections across the country. On July 16th, daily reported COVID-19 cases hit an all-time high of 77,255. Our view is that stocks can continue higher in the face of rising cases of COVID-19, provided mass lockdowns are not reinstated. We believe that small […]
Stocks managed to post small gains in June despite rising volatility from a potential second wave of COVID-19. In a report on June 5th, U.S. job gains for May surprised to the upside, increasing by 2.5 million while economists were expecting losses of 8 million. Additionally, U.S. retail sales jumped a record 17.7% in the […]
U.S. stocks continued to recover in May as states began the process of reopening their economies following nationwide lockdowns from the COVID-19 outbreak. As of May 28th, over 40 million jobs have been lost in the U.S. during the past ten weeks, which represents the most rapid rise in unemployment in U.S. history. Fortunately, the […]
April saw U.S. stocks post their best month in over thirty years, which unfortunately came against the backdrop of severe losses experienced the month prior. As of April 23rd, a total of 26 million jobs have been lost in the U.S. over the five weeks since the COVID-19 outbreak began. While the rate of job […]
March marked one of the most volatile months on record for U.S. risk assets. On March 16th the S&P 500 Index fell 11.98%, which was the third largest daily percentage loss in history. The unprecedented volatility over the past month was primarily the result of the global spread of coronavirus (COVID-19) and the associated shuttering […]
February marked one of the most rapid corrections for U.S. stocks in recent history. In early January, we alluded to the strong possibility of a 10-15% correction in the first quarter of 2020. With this correction now underway, we believe buying opportunities will present themselves as markets move lower. While we were relatively unfazed by […]
U.S. equity markets initially got off to a strong start in January, which was bolstered by the signing of a long-awaited phase-one trade deal with China. Unfortunately, the rally did not last long due to the outbreak of Wuhan coronavirus in mainland China. As a result, the last trading day of January was the worst […]
In December, U.S. stocks rallied to end the year with the largest gain since 2013. A strong jobs report, a delay of tariffs, and a further rise in consumer sentiment created the perfect storm that pushed markets to record highs during the month. The December 6th employment report by the U.S. Labor Department showed a […]
In November, U.S. equities powered higher for a ninth month this year, which was driven by improving prospects for a China trade deal, a “wait and see” stance from the Federal Reserve, and rising consumer sentiment figures. While a phase one trade deal between the U.S. and China has still not been signed, both sides […]
U.S. stocks continued their trek higher in October, which was fueled by better than expected corporate earnings, traction with China on a trade deal, and an additional interest rate cut by the Fed. Many market pundits had expected third quarter corporate earnings to take a hit from trade-related headwinds, but in fact close to three […]
In September, U.S. stocks rose for a seventh month this year, which was driven by improving investor sentiment on the heels of yet another Fed rate cut. As many market observers expected, the Fed cut interest rates by another quarter point on September 18th. Given the trickle of weakening economic data being released, we believe […]
In August, U.S. stocks posted their second monthly decline of 2019 with major averages down approximately 2%. The volatility in August was primarily driven by the trade war with China spiraling into a tit-for-tat exchange. Following President Trump’s August 1st announcement of additional tariffs on Chinese goods, the Chinese countered with a fresh round of […]
U.S. stocks notched their sixth monthly gain for the year in July. Better than expected corporate earnings from many companies helped to push markets to record highs during the month. Additionally, the expectation of an interest rate cut by the Federal Reserve materialized on July 31st with Fed Chairman Jerome Powell announcing a 0.25% interest […]
In June, U.S. stocks posted their best performance of the year and their best June performance in decades. Early in the month, U.S. Federal Reserve Chair Jerome Powell hinted that the Fed is considering rate cuts in the face of stubborn inflation figures. This was by far the largest positive factor driving stocks during the […]
U.S. stocks fell sharply in May, which was primarily driven by an unexpected reversal in the trade talks with China. After markets closed on Friday May 10th, President Trump announced that he would be increasing tariffs on certain Chinese goods to as much as 25%. With the belief that a trade deal was imminent, this […]
U.S. stocks rose for a fourth straight month this year to hit a record high in April. The upside in stocks over the past month was driven by a variety of factors. For one, corporate earnings came in stronger than expected, which further dispelled fears of an imminent recession. Also, a trade deal with China […]
U.S. stocks continued their run higher during March to cap off the best quarterly performance for equities in the last decade. While economic data continues to be mixed, U.S. consumer sentiment showed significant improvement in March. Consumer spending comprises almost 70% of the U.S. economy and therefore is crucial to sustained economic growth. We continue […]
U.S. stocks continued to rally in February following the strong gains in January. As corporate earnings reports rolled in throughout the month, they were not nearly as bad as many had predicted. While the U.S. economy does appear to be cooling off, there is no imminent risk of a of recession as many market watchers […]
U.S. stocks jumped sharply in January after hitting a 12-month low on December 24th. Fears of an imminent recession and protracted trade war with China were severely overblown and this pullback in equity markets provided a unique buying opportunity. Corporate earnings reports in January were also not nearly as bad as many had predicted. While […]