EQM Capital Blog

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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EQM Capital LLC – 3Q 2017 Market Commentary – The Hakuna Matata Market

Posted by on Oct 2, 2017 in EQM Capital Blog

Markets Continue to Rally For those who have watched the Disney classic The Lion King, you know the Swahili phrase from the film’s song, “Hakuna matata,” which loosely translated means “no worries”. Nothing seems to worry this market, even though we are now in the longest bull market since WWII. The third quarter of 2017 ended with most of the major stock market indices in record territory. The S&P 500 gained nearly 4% during the quarter, posting its eighth consecutive quarter of positive returns.  The tech-heavy NASDAQ closed the quarter up 5.8% for the quarter. Even small cap stocks,...

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EQM Capital LLC – 2Q 2017 Market Recap – The Bull Market Keeps Running

Posted by on Jul 5, 2017 in EQM Capital Blog

The first half of the year has come to a close. And despite all the drama emanating from Washington D.C., and the lack of any significant progress on the economic agenda, the stock market continues to rally. The Dow and S&P 500 both gained more than 9.3%. The tech-heavy NASDAQ has soared 14.7%.  And the rally has been broad-based as well.  Of the 30 names in the Dow, 23 posted positive returns and 70% of the names in the S&P 500 Index are up in the first half. In fact, the S&P 500 had its best start since 2013.  And this marked the strong first half of the year for the NASDAQ...

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