Posts by Jane Edmondson

EQM Capital 2Q 2022 Market Review – Don’t Be Too Blue

Posted by on Jul 9, 2022 in EQM Capital Blog

Source: Adobe Images The U.S stock market ended the quarter officially in bear market territory, down more than 20% for the year. While there have been multiple factors causing the market to experience its worst first half of the year, since 1970, the cause can be really be synthesized into one word: inflation. In order to curb runaway inflation, the Fed has been aggressively raising interest rates, playing catchup with 1.5% worth of rate increases, with more to come. The supply chain constraints the Fed thought would be “transitory” and ease, proved to be longer-lasting, exacerbated by the...

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EQM Capital 1Q 2022 Market Review – Optimists vs. Pessimists

Posted by on Apr 6, 2022 in EQM Capital Blog

Source: Adobe Images During the first quarter, U.S. stock markets recorded their first quarterly loss in two years and the U.S. bond market suffered its worst quarter in 40 years. The start of the Federal Reserve’s interest rate hiking cycle, persistently high inflation, and the Russian invasion of Ukraine, combined, creating a volatile quarter for both stocks and bonds.  The Fed Becomes Hawkish The Federal Reserve has gone from remaining stubbornly dovish last year and claiming that inflation was “transitory” to feeling they are now behind the curve in combatting it. After...

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EQM Capital LLC 4Q 2021 Market Year in Review – Investors “Ac-cent-tchu-ate” The Positive

Posted by on Jan 5, 2022 in EQM Capital Blog

AC-CENT-TCHU-ATE THE POSITIVE, Words by Johny Mercer. “You’ve got to accentuate the positive Eliminate the negative Latch on to the affirmative Don’t mess with Mister In-Between …” U.S. stock markets recorded their third year of consecutive gains in 2021, with the major indexes posting double-digit returns and the S&P 500 Index was up a whopping 28.7% on a total return basis. Investors “ac-cen-tchu-ated” the positives of economic recovery and vaccine rollouts. While vaccines were not the permanent panacea many had hoped for, they still served as a major stepping stone for...

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EQM Capital LLC 3Q 2021 Market Review – Is a Spooky Season is Upon Us?

Posted by on Oct 10, 2021 in EQM Capital Blog

Source: Adobe Images The month of September traditionally is a “spooky” month for the market.  Over the past 25 years, the S&P 500 average monthly return for September is -0.4%.  But the September Effect also extends globally, perhaps attributable to a change in investor sentiment as we move from the carefree days of summer into the profit harvesting months of Fall. This September was particularly “gruesome”, with all three major indices ending lower.  The S&P 500 tumbled 4.7%, for its largest monthly decline since the March 2020 pandemic-inspired sell off. ...

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EQM Capital LLC 2Q 2021 Market Review – Inflation is Here, Transitory or Not

Posted by on Jul 8, 2021 in EQM Capital Blog

Most major U.S. stock indices closed out the quarter at or near record highs, following a tech-powered growth spurt in June.  Investors have been rotating back into many of the favorite tech names that rose during the pandemic as inflation fears are easing, valuations are less rich, and low bond yields have folks hunting for higher returns.  Names such as Apple and Amazon have risen more than 15% over the last month, far in excess of the 2.3% return for the S&P 500 Index.  Economic conditions remain robust due to plenty of pent-up demand coupled with continued fiscal support and...

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