MARKET REVIEW In 3Q22, the S&P 500 returned -4.88%, the S&P 400 Index returned –2.46%, and the Russell 2000 Index returned –2.19%. In July, when investors believed the Federal Reserve might end its rate-raising cycle, the Russell 2000 returned 10.50% and the S&P 500 returned 9.22%. In late July, the Federal Reserve raised interest rates […]
MACRO OBSERVATIONS Inflation remains stubbornly high, which encourages the Federal Reserve to set higher interest rates that impact risk assets. Global economic growth is slowing, and the inversion of the interest rate yield curve indicates a higher probability of a global recession. Dollar strength is weighing on U.S. equity markets, which will impact the corporate […]
MACRO OBSERVATIONS Historic global inflation continued to dominate the headlines in 2Q22. Year-over-year inflation in June 2022 was 9.1%, the highest level in 41 years. The inflation we are experiencing is due to a variety of reasons including supply constraints, component shortages, government regulations, environmental policies, energy supplies, food production costs, and transportation and logistical […]
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 and geopolitical conflicts continue to exacerbate global supply issues. We still expect to see some of these risks and pressures begin to alleviate, however the recovery has been delayed beyond […]
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, […]