EQM Capital Blog

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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EQM Capital LLC – Understanding the Recent Market Correction

Posted by on Feb 9, 2018 in EQM Capital Blog

The stock market has suffered its worst performance week in 9 years since October 2008, as the Dow, S&P 500, and NASDAQ all fell into “correction” territory, defined as a 10% drop from most recent highs. The correction seems particularly brutal following a strong 2017 market which suffered few hiccups along the way.  Up until January 30, the S&P 500 Index had not fallen more than a 1% since last August. Besides the fact that we were long overdue for a pullback, several other factors have spurred the correction on. Last Friday, a surprising jump in U.S. wage growth intensified...

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EQM Capital LLC 2017 Market Review: “Nothing to Fear, But Fear Itself”

Posted by on Jan 2, 2018 in EQM Capital Blog

  To paraphrase President Franklin D. Roosevelt from his 1933 inaugural address, investors had nothing to fear in 2017, except fear itself. Of course, this is easier to see now in the rear-view mirror.  For the first time in US stock market history, the S&P 500 index finished the year with positive performance in every single month and it was never down more than 5% from its high. Sure, there was plenty to worry about during the year. The so-called “Trump Trade” was derailed by healthcare and the economic agenda failed to get traction.  The eight-year-old bull market rally, the...

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