January Reversal. Stocks markets opened 2023 on a strong note, with robust gains across global equities. Signs that inflation is easing in several major regions helped propel the advance, raising hopes that central banks may be close to the end of their rate hiking cycle. China’s reopening...
A Look Back at 2022. The dialogue in 2022 revolved around inflation, which – brought on by pandemic-related circumstances – surged to its highest level since 1981. In response, we saw the Federal Reserve enter inflation fighting mode, embarking on its most aggressive monetary...
Some Relief. US equities recovered some ground in October following a notably weak close to the September quarter. The S&P 500 rose about 8% in the month, and the Dow Jones Industrials surged nearly 14%, delivering its best one-month performance since 1976. Q3 Earnings...
Warren Buffet warned us: “A rising tide floats all boats. Only when the tide goes out do you discover who has been swimming naked.” The Oracle of Omaha made this comment in 1992, in the aftermath of Hurricane Andrew, regarding the insurance business, and how “good times” can mask...
Market Commentary. Risk assets sold off around the globe in late September as investors continued to grapple with hawkish monetary policy positioning from the Federal Reserve and other central banks to battle inflation. Stock markets have retreated to the lows notched in June, and bond rates...
Some Relief. US stocks staged a comeback in July, rebounding from a tough first half of the year. Moderating inflation expectations and better-than-feared corporate earnings helped delivered the best month of performance since 2020. High Prices. Official inflation data remains painfully...
A Challenging First Half. Financial markets struggled to their worst start to a year in decades. Accelerating inflation and rising interest rates, combined with growth fears, have fueled a broad retreat in both stocks and bonds. Equity markets have seen considerable selling pressure,...
A Challenging Time. Global equity markets saw another down month in April, but will end May about flat. It is premature to suggest we have bottomed, however. The continuing storm of high inflation, central bank tightening, geopolitical crisis, and an uncertain earnings outlook have...
Invasion. Russia’s invasion of Ukraine in late February shocked the world, and is having a significant humanitarian and geopolitical impact. Western nations are so far avoiding a direct military confrontation, responding instead with providing weapons and intelligence, and introducing...
Volatile Markets. The new year has open with a more jittery tone, and declines. Following two years of largely synchronized accommodative monetary policies, central banks from the developed world are beginning to implement tailored tightening to prioritize the taming of inflation. Volatility...