Tag Archives: 2020

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 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 6, 2021

Reflecting on the Inflection Points of 2020

Last year might end up being known as the year of countless inflection points. Narratives that were playing out over months and years were accelerated or reversed with volatility not seen since World War II. Among commodities, there were new all-time highs hit in gold and new all-time lows that reached into negative territory for…

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Jan 5, 2021

A Global Macro Look Back at Commodities in 2020

Over the past 50 years, commodities have displayed mostly positive yearly performances, as measured by the world-production-weighted S&P GSCI. The index rose in 34 out of those 50 years, or roughly 70% of the time. Usage as an inflation hedge coupled with its low correlation to other asset classes has given market participants ample reasons…

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Dec 18, 2020

So Different Yet So Alike…

To say that the world is different now than it was a year ago would be an astounding understatement. COVID-19 brought about once unimaginable conditions and changes. In the financial realm, market volatility spiked and remains markedly higher across all sectors compared to the beginning of 2020. Yet, observing the market based purely on performance,…

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Dec 8, 2020

Reversal or Recovery?

When we think about reversals in the market, we likely think of brief turnarounds in performance.  But what if it’s more? What makes a reversal turn into a recovery is a full-fledged long-term improvement in performance. We can apply this logic to Equal Weight’s recent experience.  After consistent underperformance since April 2017, the S&P 500®…

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Dec 4, 2020

Biden 1, Climate Change 1.5

“Today, the Trump Administration officially left the Paris Climate Agreement. And in exactly 77 days, a Biden Administration will rejoin it.” –Joe Biden, Nov. 4, 2020. 1 In a crowded field for “standout tweets from a U.S. president or president-elect,” for those of us who have dedicated careers to tackling sustainability challenges, this may be…

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Dec 2, 2020

A European Perspective on the U.S. Mid-Cap Sweet Spot

Should European investors be looking beyond large-cap U.S. equities for core exposure? S&P DJI’s Tim Edwards and State Street Global Advisors’ Rebecca Chesworth explore the case for U.S. mid-caps through broad and tactical sector exposures.  

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Nov 20, 2020

The Market Is Up, But So Is Volatility

So far, 2020 has brought us a global pandemic, a coordinated global economic shutdown, and, in the U.S., a notably contentious election. So it’s no surprise that volatility has been, and remains, elevated. Despite all this, equities have fared reasonably (some would say surprisingly) well, with the S&P 500® climbing 13% through Nov. 19 since…

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