Market Commentary

July 10, 2020 Weekly Market Recap

The Nasdaq Composite was where most of the action was this week, as it rose 4.0% and closed at a record high in four of the five trading sessions. The S&P 500 rose a respectable 1.8%, followed by a 1.0% gain in the Dow Jones Industrial Average. The small-cap Russell 2000, however, declined 0.6%. Continue reading

Is Value Investing Dead, Again?

Given the dramatic underperformance of value stocks (vs. growth stocks) in recent years, it’s understandable that people would question the validity of the strategy, perhaps believing that the value “premium” has vanished. But observers of market history know that value faced similar death sentences previously, only to stage a dramatic comeback and deliver spectacular returns. Continue reading

Negativity Sounds Sophisticated

Have you ever noticed how negativity sounds sophisticated? This is especially true when talking about investing and the financial markets. Think about it – it’s true. Many investors simply tune out the person always saying, “the market will recover” or “staying invested is the best course.” The optimist investor risks being called a Pollyanna or unsophisticated. Continue reading

Giant Firms Atop Market Is Nothing New

A top-heavy stock market with the largest 10 stocks accounting for over 20% of market capitalization and a marquee technology firm perched at No. 1? This sounds like a description of the current US stock market, dominated by Apple and the other FAANG stocks, but it is actually a reference to 1967, when IBM represented a larger portion of the market than Apple at the end of 2019 (5.8% vs. 4.1%). Continue reading

Two Market Visuals I Found Interesting

As the 2020 crazies continue, I just found these two market visuals interesting and wanted to share them with you (courtesy of The Visual Capitalist). They are not entirely “YTD” but close enough. Continue reading

Two Economic Fears Are Now Reasons for Optimism

While there are still many challenges with COVID-19, there are also reasons to be optimistic. From a public health perspective, without diminishing the human and societal toll this pandemic has taken, the current trajectory would have been among the best-case scenarios predicted by experts only three months ago. Continue reading

June 19, 2020 Weekly Market Recap

Stocks recover some losses this week. The S&P 500 advanced 1.9% this week, recouping some losses from the prior week. The Nasdaq Composite outperformed again with a 3.7% gain, followed by the Russell 2000 (+2.2%) and Dow Jones Industrial Average (+1.0%). Continue reading

The Fed’s Guidance and Market Volatility

The stock market is experiencing renewed uncertainty and volatility only days after it recovered its year-to-date losses. Many investors are justifiably concerned about the pace at which the market recovered and the ongoing COVID-19 crisis around the world. Continue reading

June 12, 2020 Weekly Market Recap

It was a wild ride to say the least! The stock market started the week hitting a key milestone – the S&P 500 turned positive for the year, and the Nasdaq Composite rose above 10,000 for the first time – but succumbed to profit taking that handed it its worst week since March. The S&P 500 fell 4.8%, the Nasdaq fell 2.3%, the Dow Jones Industrial Average fell 5.6%, the Russell 2000 fell 7.9%. Continue reading

Jobs Surprise and the Recovery

The latest jobs report is a positive (and huge) surprise for the economy. It shows that rather than losing an expected 7.5 million jobs in May, the economy gained 2.5 million. The unemployment rate also fell from 14.7% to 13.3% while the under-employment rate ticked down too. Continue reading