Tag Archives: index sectors

Sector Diversification through Index Linked Products

The proverb “do not put all your eggs in one basket” is what diversification achieves when it comes to investment.  A portfolio can be diversified by investing in multiple asset classes, such as stocks, bonds, real estate, commodities, etc.  A diversified portfolio helps improve the risk/return profile of the investments. In capital markets, diversification refers Read more […]

Fallen Oil Might Now Be Spilling Into Every Stock Sector

Something unusual happened in August in commodities where energy was the only sector that rose.  Despite the negative non-energy performance, supply shocks created pockets of opportunity for some individual commodities within industrial metals and agriculture. Now, oil has turned negative again from record high inventories despite U.S. production cuts, because OPEC producers have more than filled the gap Read more […]

Oil’s Price Rise Boosts All Equity Sectors, But One

The S&P GSCI Crude Oil Total Return is up 15.2%, its biggest six day gain, ending Aug. 18, 2016, since the six day gain of 16.1%, ending on Apr. 13, 2016.  As both the IMF (International Monetary Fund) and IEA (International Energy Agency) consider the oil price as a major input to global GDP estimates, and the IMF states the Read more […]

The Sources of Volatility and the Challenge for Active Management

If we needed a reminder of the continuing volatility of the world’s financial markets, the first weeks of 2016 obliged us by providing one.  What’s often overlooked, especially when volatility spikes, is that there are two distinct sources of volatility.  Understanding them can not only enhance our appreciation of market dynamics, but also provides some important insights for Read more […]