EQM Capital Blog

EQM Capital LLC 2Q 2019 Market Review – Will Slow and Steady Win the Race?

Posted by on Aug 29, 2019 in EQM Capital Blog

Markets Sold Off in May, but Rallied in June The U.S. stock market sits at record highs as the May market selloff, its worst May since 2010, gave way to a sharp market rally in the month of June.  The S&P 500 posted a strong 7.1% monthly return and is now up 18.5% for the year. Growth continues to outpace value YTD, with the S&P 500 Growth Index up 20.2% versus the 16.7% return of the S&P 500 Value Index. Large caps continue to outperform small cap peers YTD, helped by a weaker dollar, with the Russell 2000 TR Index up 17%.  Recent market gains have been fueled by...

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EQM Capital LLC 1Q 2019 Market Review – Attack of the Scary Market Monsters

Posted by on Apr 1, 2019 in EQM Capital Blog

The Dreaded Market V One of the key risks of a hasty retreat in a market sell-off is that if trends reverse, you have locked in your losses and missed out on the subsequent recovery gains. Call it the attack of the dreaded “V-shaped” recovery! In our Q4 Market Commentary entitled, “The ‘Bird Box’ Market we warned investors to keep their blindfolds on in order to avoid inflicting self-harm, and this turned out to be very good advice as depicted in the chart below. Excuse my poor penmanship, but behold, the dreaded letter “V”. After a brutal close to the year, the U.S. markets staged a...

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EQM Capital LLC Q4 2018 Market Review – The “Bird Box” Market

Posted by on Jan 8, 2019 in EQM Capital Blog

I had the pleasure of watching the new Netflix movie “Bird Box” over the holidays.  In the film, Sandra Bullock, must wear a blindfold to avoid being infected by a mystery entity which causes one to harm themselves.  I think this has parallels to the current market environment.  Investors should blindfold themselves right now to avoid self-harm! The longest bull market run in history has not yet ended, but it came dangerously close in the 4th quarter of 2018, approaching a bear market 20% decline.  The Dow finished the year with its worst December since 1931.  Despite evidence that the U.S....

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EQM Capital LLC – Q3 2018 Market Review: Sit Back and Enjoy the Ride

Posted by on Oct 5, 2018 in EQM Capital Blog

Despite political turmoil at home and abroad, the S&P 500 TR Index posted its best quarter since the end of 2013, closing up 7.7% for the quarter. The Dow Jones Industrial Average was up even more, gaining 9.6% and the tech-stock packed NASDAQ advanced 7.4% in Q3.  The Dow and S&P 500 have risen now in 11 of the last 12 quarters, and the NASDAQ is on its ninth consecutive quarterly winning streak. Market volatility was also quite muted. The S&P 500 did not close up or down 1% on any day during the quarter. That is only the second time in history that milestone has been...

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EQM Capital LLC – 2Q 2018 Market Review – Just Keep Swimming

Posted by on Jul 3, 2018 in EQM Capital Blog

After a year of placid calm and upwardly trending markets, volatility has come up for air in 2018. Markets have been reeling from severe volatility since February owing to inflation concerns and global trade war fears, as tensions between the U.S. and its major trading partners have escalated. Trade tensions have inflicted damage on emerging market and Chinese stocks, and negatively impacted large U.S. industrial stocks and other industries heavily dependent on foreign trade. On the other hand, small cap and technology stocks have benefited, as they are somewhat insulated from trade...

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EQM Capital LLC – 1Q 2018 Market Review – The Return of Volatility

Posted by on Apr 3, 2018 in EQM Capital Blog

In the first quarter of 2018, investors were reminded that stocks markets don’t go up forever, and that they can be something of a roller coaster ride. The euphoria that carried the markets to record high levels last year, came to a screeching halt in February, experienced a rebound, only to sell off once again.  Volatility, which was virtually non-existent last year, has finally returned with a vengeance.  The VIX, the measure of 30-day implied volatility for the S&P 500 Index which is considered a market “fear gauge”, spiked 81% for the quarter from 11 to almost 20. The Dow experienced...

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