by Tom Brown on Nov 19, 2018
by Tom Brown on Nov 12, 2018
by Tom Brown on Nov 5, 2018
by Tom Brown on Oct 31, 2018
by Tom Brown on Oct 22, 2018
by Tom Brown on Sep 10, 2018
The domestic equity market continued to roll right along in August, driven by the Information Technology, Health Care, and Consumer Discretionary sectors. Given the much higher representation of these sectors in the growth indices, it is no surprise that growth outperformed value across the market cap spectrum. The Energy sector was the worst performer for the month, driven by the falling price of oil from its early August highs. This is the fourth consecutive month of positive returns for the large cap indices and the sixth consecutive month for the small cap indices.
by Tom Brown on Aug 30, 2018
Although the cryptocurrency market may not be snagging headlines to the degree it did in late 2017 and early 2018, Venezuela, formerly Latin America’s richest country, has fallen into an economic downward spiral, and now is looking at the crypto market as a source of “de-risking” its economy. This is somewhat ironic, given that demand for cryptocurrencies can be viewed as a proxy for financial risk appetite. However, Venezuela’s goal in adopting cryptocurrency is to help fight the hyperinflation that is devastating this resource-rich country.
by Tom Brown on Aug 20, 2018
Emerging markets stocks have declined significantly thus far in 2018, after a solid rally last year that led to the asset class’s best return since 2009. After reaching highs in late January, the space has slumped nearly 20%, stoking fears of further downside and potential contagion. The sharp pullback has caused many investors to question their commitment to emerging markets. Should they be worried, or is this pullback to be expected, given the historical volatility of the asset class?
by Tom Brown on Aug 13, 2018
Oh how the mighty have fallen…or have they? FAANG, an acronym that represents five of the most popularly traded Information Technology stocks, including Facebook, Apple, Amazon, Netflix, and Google (whose parent company is Alphabet), generally sets the tone of the domestic equity markets. Looking at attribution for large cap growth managers, over and underweights to these stocks in many cases have influenced the returns of their investment portfolios relative to their peers and benchmarks.
by Tom Brown on Aug 6, 2018
Domestic equity markets posted strong returns in the month of July, with most of the price appreciation coming in the first two weeks of trading. During the month, markets reached highs not seen since the end of January on news of strong economic data. The unemployment rate declined to 3.9%, the second lowest rate in the last 48 years, and second-quarter US Gross Domestic Product (GDP) grew 4.1%, the highest rate in almost four years.