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Weekly Market Recap

Last week was a challenging one for stocks as incoming macro data pointed to continued inflationary pressures and an erosion of consumer confidence. CPI data was released on Wednesday and showed core inflation accelerating to +0.6% sequentially in April, after it had slowed to just +0.3% m/m in March. On a y/y basis, headline CPI […]

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Weekly Market Recap

Stocks and bonds moved lower last week in choppy trading after the Fed enacted the first 50bp rate hike in more than 20 years (May of 2000 was the last one). The market’s initial reaction was positive, as investors expressed relief that a 75bp hike appeared to be off the table for the June meeting, […]

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Weekly Market Recap

Risk assets struggled last week in the face of numerous challenges, including high inflation, slowing economic growth, and the war in Ukraine. Inflation remains front and center on most investors’ minds, with personal incomes for US consumers rising 0.5% in March (+6.2% annualized) while February’s figure was revised higher to +0.7% (+8.7% annualized), both above […]

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First Quarter 2022 – Quarterly Letter

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Weekly Market Recap

It was another tough week for stocks as bond yields continued to rise. Growth stocks bore the brunt of the selling pressure, sending the Nasdaq down 2.6% in a holiday-shortened week. Cyclical sectors fared better thanks to solid economic data, with materials (+0.7%), industrials (+0.4%), and energy (+0.3%) all finishing in positive territory. Small caps […]

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Weekly Market Recap

It was another tough week for stocks and bonds, prompted by hawkish commentary on Monday from FOMC member Lael Brainard regarding the potential pace of Fed balance sheet reduction. That was followed up on Wednesday by the release of the FOMC meeting minutes from March, which exacerbated investor concerns. The result was an abrupt reversal […]

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Weekly Market Recap

A rotation trade played out last week, with defensives rallying, tech steady, and cyclicals lower as the yield curve pivoted into an inversion. Small caps outperformed, as did most international benchmarks on gains in Europe and China. Treasuries were in focus as the 2s10s yield curve saw the culmination of a 12-month flattening trend that […]

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Weekly Market Recap

Stocks finished higher for the second straight week despite surging bond yields. The energy sector led the way with a 7.4% return on the back of a sharp rebound in oil prices, while all other sectors besides healthcare posted positive returns on the week. Small caps lagged the rally and finished slightly lower. International stocks […]

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Weekly Market Recap

Stocks staged a strong rebound last week that was only briefly interrupted (for about an hour) by the start of the Fed’s rate hiking cycle. Most US benchmarks were up at least 5%, while an even sharper rally in growth stocks pushed the Nasdaq higher by more than 8%. Only the energy sector failed to […]

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Weekly Market Recap

Most US stocks were lower again last week as the Russian war in Ukraine ground on. Once again, energy was the only sector in the S&P 500 to finish higher on the week. Interestingly, European stocks fared somewhat better in the latter half of last week, rebounding significantly after reaching YTD lows on Tuesday. Emerging […]