Financial Markets Commentary – The Aftermath of Brexit
June 24, 2016
To the surprise of most investors around the globe, yesterday the U.K. voted 52% to 48% in favor ofleaving the European Union (EU) after more than four decades in a stunning rejection of thecontinent’s postwar political and economic order. Prime Minister David Cameron resigned, statingthat he would serve another 3 months until his replacement is elected. Financial markets around theglobe responded with stocks selling-off while bonds and gold are rallying.
Trade Update – June 15, 2016
Yesterday we eliminated all direct exposure to European stocks by selling IEV (IShares Europe ETF) across assetallocation accounts greater than $100,000. Proceeds from the sale were invested in cash (money market sweep fund).
|IEV Exposure Pre-Sale|
Trade Update – March 10, 2016
With all 3 of our tactical indicators (fundamental, valuation, and technical analysis) directing us toincrease exposure to U.S. Mid Cap stocks, earlier this week we raised exposure to this asset classacross all asset allocation strategies from underweight to equal-weight to the strategic target. Weaccomplished this by buying more IJH (IShares Core S&P Mid-Cap ETF). Funding for the purchasecame from cash.
Stocks over the past two weeks have benefited from seller's exhaustion and stabilization in the priceof oil. Stocks appear to be building...
Third Quarter 2014 Financial Market Commentary
Time is on the Fed’s Side
The S&P 500 Index generated a 1.13% total return in the third quarter for its seventh consecutive quarterly gain as
evidence of an improving economy emerged with second quarter Gross Domestic Product (indicator of economic growth) coming in at 4.6%. The remainder of broad risk-based asset classes and investment grade corporate bonds posted negative returns for the quarter (See Tables #1 & #2). Investors became more focused on geopolitical events in the Ukraine, Syria, Iraq, and Hong...
Perspectives on the Recent Sell-Off in Stocks - August 1, 2014
Since reaching all-time highs on 7/24/14 and 7/16/14 respectively, the S&P 500 Index and Dow Jones Industrial Average have been selling-off for the past 5 days (see Table 1). Most risk-based assets have been following suit including U.S. Mid Cap and Small Cap, International, and Emerging Markets stocks. Reasons cited by market pundits include fears of the Federal Reserve (Fed) raising interest rates sooner than consensus forecast (late spring of 2015), fighting in the Gaza Strip and Ukraine, Argentina defaulting on its debt for the 7th time in its history, and mounting losses at a Portuguese Bank – Banco Espirito Santo.