EQM 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,...
Read MoreEQM Capital LLC 4Q 2020 and 2020 Market Review – The ‘Year of Living Dangerously’ and Our Predictions for 2021
The Year of Living Dangerously[1] If we took a poll, most people would respond that they would not have ever imagined a year like 2020, nor would they want to relive it. But despite the human, social, and economic toll this “Year of Living Dangerously” has wrought, there have been some silver linings along the way: more time spent with family, working from home, no business travel, quality time with the pets, more beach walks and sunsets, and, oh yes, rocketing financial markets. Since the stock market bottomed on March 23, 2020, the S&P 500 rose 68 percent, shattering...
Read MoreEQM Capital LLC 3Q 2020 Market Review – Looking Ahead to a Post-Pandemic Future
Source Adobe Images Despite a rocky September, U.S. stocks ended the third quarter on a high note, posting a second consecutive quarterly gain of 8.9%, leaving the S&P 500 Total Return Index up 5.6% for the year. Small cap stocks also rallied 4.9% in Q3, but lag large cap peers YTD, remaining down 8.7% for the year. Markets have been resilient despite the maelstrom of uncertainty surrounding the COVID-19 pandemic, economic stimulus, and the upcoming election. Market Headwinds The global pandemic death toll stands at 1 million worldwide. Our own President has fallen...
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