Jan 21, 2021

Bitcoin’s Rise Reminiscent of U.S. Gold Rush

The recent enthusiasm for Bitcoin is reminiscent of the Gold Rush in the western U.S. from 1848-1860. With fits and starts, U.S. enthusiasm for gold exploded over this time period. Gold was the most popular safe haven and store of value in the 19th century. Viewed as one of the least volatile commodities, gold prices…

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Jan 20, 2021

Latin American Equities Close the Year in the Red Despite the Strongest Q4 in 20 Years

Volatility is often the name of the game in Latin America. While 2020 was no exception, global markets also rode the COVID-19 volatility wave (see Exhibit 1). The global pandemic exacerbated uncertainty around the world and all capital markets were affected, particularly during Q1 2020. In Exhibit 1, we can see that the S&P Latin…

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Jan 20, 2021

Global Islamic Indices Advanced 28% YTD, Outperforming Conventional Benchmarks up to 12%

Global equities enjoyed substantial gains in the last quarter of 2020, gaining 15.9%, as measured by the S&P Global BMI. Shariah-compliant benchmarks, including the S&P Global BMI Shariah and Dow Jones Islamic Market (DJIM) World Index, slightly underperformed their conventional counterparts in Q4 2020 due to the strong performance of the conventional Financials sector, which…

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Jan 19, 2021

Manage Drawdown and Recovery with Dynamic Allocation

In October 2019, S&P Dow Jones Indices launched the S&P ESG Global Macro Index, an ESG-themed, regionally diversified, volatility-managed, multi-asset index. As discussed in my previous blog, the index has generated stable absolute returns of 5.44% annually, a volatility of 4.89%, and downside protection during extreme market scenarios, based on back-tested performance from Aug. 31,…

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Jan 18, 2021

Unsung Stories of 2020

Early in 2020, global stock markets acted in concert during the sell-off, bottoming out around the world in late March. However, the extent to which different markets declined, and the strength of the subsequent recovery, differed significantly around the world. With 2020 now in hindsight, S&P DJI’s range of global equity indices tell a tale…

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Jan 18, 2021

Indexing Biodiversity: Examining Water as an Asset Class

Water is one of the world’s most essential commodities, but it is at risk from overuse, pollution, and soaring demand. S&P DJI’s Tianyin Cheng joins Redsand Ventures’ Colleen Becker to explore new tools for understanding and accessing water assets. Learn more: https://www.spglobal.com/spdji/en/education/article/investing-in-water-for-a-sustainable-future

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Jan 14, 2021

Performance of Indian Capital Markets in 2020

Indian capital markets had an exceptional year in 2020. The COVID-19 pandemic initially had an adverse impact on Indian capital markets, as indices across size and sectors fell during the period from February 2020 to May 2020. However, from June 2020 onward, all size and sector indices had a bull run through the end of…

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Jan 13, 2021

Oscillations in Opportunity

2020 was a year of two reversals for the market. First, equities recovered from the depths of March to finish the year strongly, and second, smaller-cap and value stocks staged a roaring comeback in the final quarter. We can better understand the second reversal by analyzing the market’s distribution of returns and the performance of…

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Jan 12, 2021

Style Rotation through the Revenue Exposure Lens

One of the major trends in the last few years has been the outperformance of large, growth-oriented stocks and, at first glance, 2020 represented a continuation of this trend. For example, the S&P 500® Growth (33.5%) outperformed the S&P 500 Value (1.4%) by 32.1% last year, the largest difference in calendar year total returns between…

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Jan 7, 2021

A Reversal, or Two

For many equity investors, the stand-out theme of last year was the reversal in the market’s initial response to, and recovery from, the COVID-19 pandemic: the dramatic price declines in March, the wild swings around the bottom as VIX® marked its highest closing level ever, and the just-as-dramatic recovery to new all-time highs by late…

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