Tag Archives: index sectors
What’s In A Sector?
Following an index announcement stating Nektar (NKTR) among other stocks would be moving to the S&P 500 prior to the open on March 19, 2018, an inquiry came in about the index impact of NKTR on the S&P SmallCap 600 Health Care Index performance. Given the stock rose over 70% in 2018, it seemed reasonable to…
- Categories Equities, S&P 500 & DJIA
- Other Tags
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…
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…
- Categories Commodities, Equities, S&P 500 & DJIA
- Other Tags
- Categories
- Commodities, Equities, S&P 500 & DJIA
- Other Tags
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…
- Categories Commodities
- Other Tags
- Categories
- Commodities
- Other Tags
Commodities Post 3rd Worst July Ever
July was a bloodbath for commodities in the Dow Jones Commodity Index (DJCI) losing 6.0% and in the S&P GSCI losing 9.6% in total return. Although the equally weighted DJCI is still up 7.4% YTD through July 29, 2016, the S&P GSCI that is world-production weighted gave up all its gains from Q2 and is now negative 65 basis…
- Categories Commodities
- Other Tags
- Categories
- Commodities
- Other Tags
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…
- Categories Equities, S&P 500 & DJIA, Strategy
- Other Tags