Tag Archives: U.S. dollar
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…
- Categories Equities
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- Equities
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Mid Caps Less Risky Than Large Caps?
In November, there was high market volatility in response to at least a few major events including the U.S. midterm elections, Brexit, G20 and Fed Chair Powell’s comments. The risk (measured by 30-day annualized volatility) on Nov. 30, 2018 for the S&P 500 was 20.6%, which is 3.5 times higher than its risk of 5.9%…
- Categories Equities, S&P 500 & DJIA
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Small Caps Beating Large By The Most In 16 Years
Small caps just outperformed large caps for three consecutive months for the first time since Sep. 2016. From Feb. through May, the S&P SmallCap 600 (TR) outpaced the S&P 500 (TR) by 9.5%. It is the biggest premium realized in a three month period since the three months ending in May 2002. In fact, outperformance this big has only happened…
- Categories Equities, S&P 500 & DJIA
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Here’s How A Rising Dollar Impacts Stocks
The U.S. dollar hit a 4 month high last week from concern over potentially faster interest rate hikes to control inflation as oil exceeded $70 per barrel and the lowest unemployment since 2000 was reported. If the U.S. dollar continues to strengthen, it may be useful to know how U.S. equities moved historically in times when the…
- Categories Equities, S&P 500 & DJIA
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Here’s Why Mid-Caps Matter As The Dollar Drops
The S&P 500 just posted its best January since 1997, and also had its highest measured optimism, a 6.6% risk premium, since October 2015. Whether history repeats itself is yet to be seen, but just a few days after that high risk premium, the stock market topped on Nov. 3, 2015. By December investors saw the…
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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Small Caps Need No Style To Accelerate With GDP
The first estimate of US GDP for the fourth quarter is set to be released this Friday and the median forecast is 3.0% according to MarketWatch, which if met or exceeded will be the first time 3 consecutive quarters to show at least 3% growth since the first quarter of 2005. While this is supportive…
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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Why Cutting OPEC Supply From Highest to Higher Still Hurts
After OPEC agreed to an oil output cut in Algiers on Sep. 29, they increased supply by 230 kb/d to a record 33.83 mb/d in October according to the International Energy Agency (IEA). Supply from Iraq reached the highest level ever and Iran pushed flows to a pre-sanctions rate of 3.72 mb/d. Now OPEC supply has…
- Categories Commodities
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- Commodities
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The S&P 500’s Flat Year
By now we are all painfully aware that the U.S. equity market was essentially flat in 2015. The S&P 500’s total return was 1.38%, all of which was a function of dividend income — the index’s price return was -0.73%. Other large-cap averages were in the same ballpark — the Dow Industrials, e.g., logged a total…
- Categories S&P 500 & DJIA
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International Corporate Bond Exposure
Consistency and balance are often essential qualities for a strong portfolio. In the fixed income space, investors can look to the S&P International Corporate Bond Index to bolster the stability and diversity of their investments through exposure to investment grade corporate debt outside the United States. International corporate bonds are issued in a variety of…
- Categories Fixed Income
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- Fixed Income
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The Impact of Currency Exposure: Evidence From the Performance of Actively Managed Global Equity and Bond Funds
In the past 18 months, currency hedging has become one of the hottest topics in the investment community. As the U.S. economy strengthens and decouples from the rest of the developed and emerging economies, and as there is unprecedented quantitative easing by the Bank of Japan and the European Central Bank, it is nearly inevitable…
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