Markets in Brief: In August, markets ended the month higher after big swings to start the month. The topic of the month was the “Yen Carry Trade” unwind leading to heightened volatility in the first two weeks of August. The spark notes: investors were borrowing in Japanese Yen, a cheap currency, to buy assets denominated […]
Markets in Brief: In July, markets remained choppy as investors weighed whether big Technology companies can deliver on their heavy AI-related investment. There was a large rotation into companies outside of the most popular trades (like those AI names) as investors looked for other ways to capture market upside. Focus now turns to central bank […]
Markets in Brief: In June, markets continued to price in an outcome consistent with a growing economy, low unemployment, and ample liquidity. An improvement in valuations (or “multiples”) primarily drove the ~4% gain in the S&P 500 in June. Treasuries also saw reprieve with moments of positive gains over the month, rallying slightly after another […]
Markets in Brief: In May, equities resumed their charge higher over the month on the back of encouraging inflation data, further normalizing economic growth data, and optimism over the durability of artificial intelligence as an investment theme. Tech stocks, proxied by the Nasdaq index, were up ~4% over the month as NVDA and others propped […]
Markets in Brief: In April, equity markets took a well-deserved breather and ended the month lower amid heightened geopolitical tensions and inflation concerns. On the former, the direct exchange of military operations between Iran and Israel sparked a risk-off tone as the conflict spread beyond the borders of Israel and Palestine. This sparked fear of […]
Markets in Brief: In March, equity markets continued the grind higher as the rally broadened out beyond the “Magnificent Seven.” This is typically a welcomed sign for market strength as it dulls the concentration risk from the massive rally in AI-oriented names like Nvidia and the other mega cap tech companies. For the quarter, the […]
Markets in Brief: Global equity markets continued the grind higher in February despite the uptick in interest rates during the month. The U.S. remains remains a bright spot in economic activity, which is being reflected in stronger-than-expected GDP growth, corporate earnings, and inflation data. This dynamic has pushed back expectations of the first Fed rate […]
Markets in Brief: 2024 is starting the same way 2023 ended: with positive equity market performance. Questions remain around the durability of this rally, but positive economic momentum is keeping markets afloat for now. Meanwhile, bond markets are in a tug of war between expectations that the Fed will cut rates this year and the […]