MARKET REVIEW In 1Q22, the S&P 500 returned -4.60% and the S&P 400 returned -4.88%. The market was particularly weak in January as inflation hit a 39-year high and U.S. Government bond yields increased. MACRO OBSERVATIONS In 1Q22, Russia assaulted Ukraine. The brutality was shocking. It laid bare our assumptions about geopolitical stability and international […]

MACRO OBSERVATIONS Wage pressure, logistical transportation, higher commodity prices, and supply chain constraints continued to hamper earnings and forward guidance for many companies. The pandemic continues to exacerbate supply issues in developing countries, where many suppliers and manufacturers are located. We expect to see some of these risks and pressures begin to alleviate in 2022 […]

MARKET REVIEW The market closed 2021 near its 12-month and all-time highs. In 4Q21, the S&P 500 returned 11.03% and theS&P 400 MidCap returned 8.00%.  In 2021, the S&P 500 returned 28.71%; the S&P 400 MidCap returned 24.76%. While 2021 was a great year, the start of 2022 is anything but great.  Inflation is lasting […]

MACRO OBSERVATIONS Wage pressure, logistics and transportation, higher commodity prices, and supply chain constraints have hampered earnings and forward guidance for many companies. Continued impacts from the global pandemic in developing countries have also exacerbated supply issues, as many suppliers and manufacturers are in these countries. We expect to see some of these risks and […]

MARKET REVIEW In 3Q21, the Russell 2000 returned -4.36%, and the S&P 500 returned 0.58%. The market was particularly weak in late September, after the Federal Open Market Committee Statement. YTD as of September 30, 2021, the Russell 2000 returned 12.41%, and the S&P 500 returned 15.92%. MACRO OBSERVATIONS 10-year U.S. Treasury rates rose 35 […]

MACRO OBSERVATIONS In 2Q21, the Russell 2000 returned 4.29%. Value stocks narrowly outperformed relative to growth, as the long end of the yield curve reversed its rapid and significant ascent in February and early March. We believe accommodative Central Bank policies will continue. However, discussions began on tapering bond purchases. The balance between economic growth, […]

MARKET REVIEW In 2Q21, the S&P 500 returned 8.55% and the S&P MidCap 400 returned 3.64%. MACRO OBSERVATIONS 10-year U.S. Treasury rates fell from 1.75% to 1.5% after a one-year increase from near 1.0%.  The decrease helped equities in the second quarter. Inflation – Oil rose 18.1% and a basket of other commodities increased 9.4% […]

MARKET REVIEW In 1Q21, the Russell 2000 returned 12.70% and the S&P 500 returned 6.17%.  Bullish sentiment continued through early February until inflation fears increased and the long end of the yield curve began to rapidly rise.  This caused a risk-off period for higher growth stocks and a significant rotation out of growth into value […]

MARKET REVIEW In 1Q21, the S&P 500 returned 6.17%.  There was a significant rotation out of growth into value late in the quarter – the S&P 500 Value Index returned 10.58% in Q1 while the S&P 500 Growth Index finished up 2.06%. Source: Zephyr Informais MACRO OBSERVATIONS We believe accommodative policies have long provided tailwind […]

MARKET OVERVIEW In 4Q20, the S&P 500 returned 12.15%; Russell 2000 returned 31.37%. For the year ending December 31, 2020, the S&P 500 returned 18.40%; Russell 2000 returned 19.96%.  During 4Q20, low-quality and value factors outperformed, while high-quality, momentum and low-volatility underperformed.[1] [2]  Top-performing industries were energy, materials, financials and consumer discretionary as COVID-19 vaccines […]