Tag Archives: u.s. equities

Turning Point?

Here are six notable developments in the U.S. financial markets in September 2017. Smaller caps outperformed large caps. Value outperformed growth. Energy was the top-performing sector, and the utilities sector was the worst-performer. Developed markets posted gains, while emerging markets lost steam. Commodity indices rebounded, driven by recent strength in energy. U.S. 10-year and 30-year Read more […]

The Much-Maligned Market Portfolio

It seems generally acknowledged that no investment strategy should be expected to offer an optimal trade-off between return and risk in all periods.  Yet I often hear criticism of market-cap weighting, presumably because modern portfolio theory (MPT) postulates a hypothetical market portfolio as efficient in the mean-variance sense.  Financial engineers, product developers, and asset managers Read more […]

Most Major Islamic Indices Lag Conventional Benchmarks in 2016 as Strong Q4 Financials Sector Gains Detract From Performance

Most of S&P Dow Jones Indices’ Shariah-compliant benchmarks lagged their conventional counterparts for the year, as the financials sector—which is largely absent from Islamic indices—outperformed, and health care—which tends to be overweight in Islamic Indices—was the worst-performing sector globally. The S&P Global BMI Shariah and Dow Jones Islamic Market World finished the year up 4.2% Read more […]

The Most Tranquil of Times

In step with the July, global markets calmed further in August. Based on the dispersion-correlation map, which provides a framework through which we can assess market volatility, equities have entered a very tranquil environment. It wasn’t too long ago that correlation spiked in equity markets due to geopolitical events. That heightened correlation was resolved swiftly Read more […]

Keep those flowers short on Valentine’s day

Historically (from 1928), as defined by the S&P 500, 52.1% of the trading days are up (average +0.745%) and 46.2% are down (average -0.789%).  For Valentine’s day there is a thorn. On February 14th the market has been up only 40.0% of the time and down 56.9% of the time (it was flat in 1944 Read more […]