Investment Management

The overall S&P500 dropped a bit over -2% during last weeks holiday shortened and lower liquidity pre-Easter 3-day weekend.  It sits down around -8.5% year to date.  The tech heavy NASDAQ dropped almost -4%.  Rising long-term Treasury yields, with the 10-year rate reaching 2.85% last week, which directly create rising…

Starting out the second quarter on a down note, we are in the “deadzone” for corporate information and stock buybacks.  The S&P fell -1.3% last week with technology and consumer discretionary down the most.  “Boring” healthcare, staples and utilities all rose on the week.  Market volatility combined with rapid sector…

Last week, the three major U.S. stock markets were mostly little changed.  The moves on the week had the Dow -0.1%, S&P 500 +0.1%, and NASDAQ Composite +0.7%.  Last week, the yield curve flattened and finally inverted with 2s topping 10s marginally.  The doomsayers of this forward indicator of future…

Against the backdrop of very negative investor sentiment, hedge fund positioning, and the ongoing Russia/Ukraine war, on Friday March 11th, we covered some early “optimism indicators” with the S&P 500 at 4185. One of these indicators we discussed was the need for a follow through “breadth thrust” where the number…

Against the backdrop of very negative investor sentiment, and hedge fund positioning into an option expiration week Friday, the three major U.S. stock markets ripped higher.  On the week, the Dow rallied 5.5%, S&P500 over 6%, and the NASDAQ rallied 8.2%.  This was the markets best week since November 2020…

Equity markets continued their volatile trading last week amid ongoing geopolitical uncertainty caused by Russia invading Ukraine, the economic slowdown it will likely cause, and the commodity cost push it will have on prices this summer.  A wild ride for oil prices amid ongoing uncertainty in Ukraine created even more…

Equity markets continued their volatile trading last week amid ongoing geopolitical uncertainty caused by Russia invading Ukraine, the economic slowdown it will likely cause, and the commodity cost push it will have on prices this summer. The S&P 500 dropped -1.6% on the week, with strength in defense companies, energy,…

Despite Russia’s invasion of Ukraine, the S&P 500 finished the week up 0.8%, after some wild intraday swings.  Forward volatility markets are priced for 100+ point intraday moves in the S&P500.  Not fun and untradeable for anyone except computers or the shortest-term traders.   Even with last week’s rally the S&P500…

The S&P 500 ended -1.52% lower despite FOMC meeting minutes suggesting potential flexibility on the pace of policy tightening. Global equities fell last week as investors moved into safer assets amid rising tensions between Russia and Ukraine.  European equities dropped more than domestic USA ending the week down about -1.80%…

The markets continue their “whipsawing away” theme of first quarter 2022.  The S&P500 fell -1.8% last week to stretch its correction to -7.9%. The technology heavy NASDAQ is down about -12% YTD.   On a YTD basis, the S&P 500’s Energy sector (led by old line) has outperformed its other 10…

At 4500 on the S&P500, the index sits 6% below its all-time highs.  Even with the Nasdaq surging 8% in four sessions last week, it sits down about -10% below its all-time highs.  A one-day -26% faceplant by Facebook/Meta crashed the tech rally party. Amazon wowed investors with the strength…

Overview Selloffs like the ones we are currently experiencing are never fun and enjoyable.  These are very normal feelings. The main source of the volatility in market is the Federal Reserve and the prospect of tighter monetary policy. Fortunately, there are several recent historical periods we can look at that…