Monthly Market Commentary
December 2024
With New Risks Surfacing, How Should Investors Position Portfolios in 2025?
Despite still stubborn inflation, a brief growth scare, less than expected interest rate cuts, and a pullback in December, US equities were up notably in 2024 on the back of a strong economy, accelerating earnings growth, US election results, and AI/mega-cap-related strength. The S&P 500 Index gained 25% for the year and recorded 57 all-time […]
Read MoreNovember 2024
Valuations Have Richened, But Areas Outside of Large- Caps Remain Attractive
Amid the results of the US presidential election and resilient economic data, equities were up in November. Both the Dow Jones Industrial Average and S&P 500 indices produced their best monthly returns of 2024, gaining 7.7% and 5.9%, respectively. US small-caps (+10.9%) were among the best performers, followed by US mid-caps (+9.0%) and US growth […]
Read MoreOctober 2024
Forget ‘T-Bill and Chill.’ The Economic Backdrop Ahead is Supportive and the 493 Look Attractive
Amid underwhelming Big Tech earnings, concerns regarding the path for Fed interest rate cuts, election uncertainty, and geopolitical conflict, equities were down in October as the S&P 500 Index and Nasdaq 100 Index fell 0.9% and 0.8%, respectively. International developed equities (-5.0%) were among the worst performers, followed by US small-caps (-2.6%) and emerging market […]
Read MoreSeptember 2024
Market Broadens Amid China and Fed Policy Actions. Play the Rotation While Barbelling Your Portfolio
Despite pullbacks and acute periods of elevated volatility, major equity indices were up in Q3 amid decelerating inflation, initial Fed rate cuts, increased probabilities of a soft landing, and China’s stimulus measures. Market participation broadened beyond technology stocks during the quarter as the S&P 500 Equal Weight Index rose 9.6% while the market-cap-weighted S&P 500 […]
Read MoreAugust 2024
Fed Rate Cuts Give Higher Probability of the Great Rotation Occurring
Despite pullbacks and elevated volatility in the earlier days of the month, major equity indices were up in August amid easing inflation, a dovish change in monetary policy, and increased probabilities of a soft landing. The S&P 500 gained 2.4% for the month while the Dow Jones Industrial Average was up 2.0%, posting a new […]
Read MoreJuly 2024
Effects of Tight Monetary Policy have Started to Materialize. Will the Great Rotation Continue?
Amid easing inflation, underwhelming technology-related earnings, and increased probabilities of Fed interest rate cuts, equity markets witnessed a meaningful rotation in July in which smaller, value-oriented stocks outperformed large-cap growth. The Russell 2000, an index that tracks small-caps, gained over 10%, posting its best month since December, as well as its best July since 2022. […]
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