Tag Archives: sectors

How Did Indian Equities and Fixed Income Fare in 2016?

What a year 2016 was—from concerns about slowing down of the Chinese economy and a surprise vote by the UK to exit the EU to a continued trend of low-to-negative interest rates among major economies globally, demonetization in India, the shocking victory of Donald Trump in the U.S. presidential election, and finally, the U.S. Federal Read more […]

Dow Jones Industrial Average® 2016 Year in Review

The Dow Jones Industrial Average ended 2016 at 19,762.60 – up 2.337.57 points for a 13.42% annual return, the best year since 2013 when the market surged over 26%. Biggest Themes – markets were driven by the crash (and partial recovery) in oil prices, Fed-watching, China, Brexit and questions regarding the US economy. Oh yeah, 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 […]

Plus ça change, plus c’est la même chose

This coming Sunday, December 4, 2016, a constitutional referendum will take place and the citizens of Italy will decide on a proposal by Prime Minister Matteo Renzi that, if passed, would mean major changes to Italy’s legislative system. The Prime Minister has stated his intent to resign if the “No” camp triumphs. The political stakes Read more […]

Rising Rates and Inflation: Implications for Equities

Even a cursory glance at financial markets indicates that market participants are expecting some form of interest rate increase in the near future—there has been a sell-off in the 10-Year U.S. Treasury Bond market, and certain sectors that are expected to benefit from such a rate increase have gained.  For instance, the S&P 500 Financials Read more […]

Why MSCI and S&P Dow Jones Indices Began Working Together in One Important Way

MSCI and S&P Dow Jones Indices respect each other, as good rivals should, but we often disagree. We see South Korea as a developed market and MSCI classifies it as emerging; we have 500 companies represented in our leading US index and MSCI has 295; we have our own free float methodology and they have Read more […]

India: Market Update for Q3 2016

Buoyed by a good monsoon season, an increased inflow of funds by foreign portfolio investors (FPIs), the passage of a goods and services tax (GST) bill in the upper as well as lower house, and the possibility of an interest rate cut due to low to moderate inflation, the Indian capital market posted its second-best Read more […]

Winners and Losers in Trump’s Electoral Surprise

Donald Trump’s unexpected success initially threatened to send the U.S. equity markets into steep decline.  Yet as I write, the S&P 500 has moved very little since yesterday’s close (it is up a little), while the VIX has fallen dramatically. So why (or how) has volatility remained so low this morning when everyone expected it to Read more […]

Examining Sector and Factor Performance in the Third Quarter of 2016

High beta, value factors among the star performers, while low volatility lags amid heightened appetite for risk The high beta, value and size factors outperformed the broad-market S&P 500 Index by a sizeable margin during the third quarter, with the S&P 500 High Beta Index gaining 12.18% during the three-month period – outpacing all other Read more […]

Quiet Before the Storm

Quiet Before the Storm? Global markets seemingly remain unperturbed—despite homing in on Election Day in the U.S.  Although dispersion ticked up globally from September month-end levels, it is still sitting at below average levels as of October 31 in the U.S. Similarly, correlation is also well below average. Together these coordinates are pointing to particularly Read more […]