EQM Capital 1Q 2022 Market Review – Optimists vs. Pessimists
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...
Read MoreEQM Capital LLC 4Q 2021 Market Year in Review – Investors “Ac-cent-tchu-ate” The Positive
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...
Read MoreEQM Capital LLC 3Q 2021 Market Review – Is a Spooky Season is Upon Us?
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. ...
Read MoreEQM Capital LLC 2Q 2021 Market Review – Inflation is Here, Transitory or Not
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...
Read MoreEQM Capital LLC 1Q 2021 Market Review – The Balancing Act Between Optimism and Market Excess
The first quarter of the year had its share of ups and downs, starting the year with violent political division that reached a fever pitch on January 6th and ending on a hopeful note as vaccination progress and more fiscal stimulus have boosted economic optimism and driven the market to record high levels, with the S&P 500 Index hitting the 4,000 level for the first time. Value and Small Cap Outperform A $1.9 trillion stimulus package accompanied by rising interest rates and expectations for increased inflation bolstered the performance of value names, economically-sensitive cyclicals,...
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