Sunday, December 16, 2018

Newsletter

Investor angst over the unexpected vote on Brexit was short-lived with a “risk-on” theme returning to the markets in July and leading to stock market highs for the Dow, NASDAQ and S&P 500 in August. Highly unusual election antics and continued geopolitical concerns on a number of fronts did not dampen investors’ risk appetite or their quest for yield.

Read More on Market Review 2016 Q3

The first quarter of 2016 revealed a dramatic tale of two halves, split nearly evenly between “risk off” and “risk on” sentiment. Falling commodity prices and broad-based concerns over global economic growth contributed to poor performance in both the equity and corporate bond markets, as well as a sharp rally in US Treasuries through mid-February.

Read More on Market Review 2016 Q1

The 2nd quarter was reasonably uneventful and markets were relatively placid until June 23rd, when British voters narrowly approved the Brexit referendum. Investor complacency was replaced with shock, and markets reacted fiercely. Volatility spiked, global bond yields fell sharply, the pound hit a 31-year low with a record intra-day swing of more than 10%, stock markets plunged, and gold surged.

Read More on Market Review 2016 Q2

The 2015 calendar year will be remembered for the long-awaited first Fed hike in nine years as well as a year of disappointing returns across asset classes, with plunging commodity and oil prices and uncertainty over the pace of China’s slowdown being key forces. Painfully, no year since 1990 has seen more negative returns across equity and fixed income indices, oil and gold prices.

Read More on Market Review 2015 Q4