Capital market volatility picked up during the third quarter as Treasury yields soared to multiyear highs and the equity rally lost momentum. Stubborn inflation, a resilient labor market and a projected ‘higher for longer’ interest rate environment are shifting investor expectations. The U.S. Treasury yield curve has been inverted [...]
The S&P 500 Index recorded five consecutive weeks of gains during the second quarter, the longest rally since the fall of 2021. The index is up almost 17% YTD, 24% since the October low and is only 9% from its record high in January 2022. This is a remarkable run. [...]
Capital markets began 2023 on a positive note, with most indices achieving first-quarter gains. Volatility was high however, caused by banking sector issues, inflation, monetary policy and recession concerns. It has been more than 30 days since Silicon Valley Bank and Signature Bank failed. Media coverage has been broad, [...]
The year 2022 was notably full of market surprises and volatility. We hope there is less drama in 2023, but there is no guarantee it will be any more predictable. There have been plenty of headlines documenting the issues impacting the global economy (we have also discussed them in [...]
Investor sentiment has been decidedly bearish since the beginning of the year and for good reasons. Slowing economic growth, elevated inflation, global conflict and aggressive monetary policy have created persistent volatility. Broad market indices produced negative returns for the quarter and are down double digits year to date. As [...]
The Federal Reserve subscribes to a “flexible" 2% average inflation target as its long-term goal for price stability. In order to manage their dual mandate of price stability and full employment, they expand or compress the money supply, traditionally through interest rate hikes or reductions. US interest rates have been [...]
Monumental events occurred in the first few months of 2022. Russia’s unprovoked war in Ukraine, persistently high U.S. inflation, and a shift in Federal Reserve policy to normalize interest rates are pushing and pulling capital markets globally. It will require time and patience for the markets to fully digest [...]
We are nearly two years into the pandemic and evolving variants continue to challenge us. Confirmed cases are setting new records daily and medical facilities are once again strained, but that is where the bad news begins to fade. Fatalities remain well below peak levels and families and businesses [...]
U.S. large cap stocks, as measured by the S&P 500 index, returned 0.6% during Q3-2021. Global equities, as measured by the MSCI All Country World index, retreated a modest 1.1%. Domestic large cap stocks outperformed small and mid cap, and developed international stocks outperformed emerging markets. Below is a [...]
Domestic stocks closed out the first half of the year with strong gains. The S&P 500 index return was 8.6% during the second quarter and 14.4% year to date. It was the 5th consecutive quarter the index returned at least 5%, a rare and remarkable performance by historical reference. [...]
