The Longer The Base, The Higher In Space

Emerging markets (EM) is one area we contine to like in 2018 as a place to pursue alpha. As we noted in our Outlook 2018: Return of the Business Cycle, this group has solid fundamentals, modest valuations, and an opportunistic demographic backdrop.

The country breakdown of the MSCI Emerging Markets Index shows that China is the largest component, followed by South Korea and Taiwan. Continue reading

Here Comes Friday the 13th!

Tomorrow will be the first Friday the 13th in April since 2012. The S&P 500 Index actually dropped 1.25% on that day, which ranks as the worst drop on any Friday the 13th going back 15 years!

Of course, this is also a big day if you are unfortunate enough to suffer from triskaidekaphobia—the fear of the number 13. In case it helps with your next game of Trivial Pursuit, a fear of the actual day of Friday the 13th is called paraskevidekatriaphobia or friggatriskaidekaphobia. (Try pronouncing those words.)

But does this fateful day really mean anything? Continue reading

Weekly Update – Swings Continue as Markets Search for a Bottom

Weekly Performance

US: S&P 500 Index +2.12%, Dow +2.65%, Nasdaq +1.01%
Europe: STOXX Europe 600 +1.38%, German DAX +1.77%, France CAC 40 +1.41%, U.K. FTSE 100 +1.95%
Asia: Japan Nikkei +2.63%, China Shanghai Composite +.24%, Korea KOSPI +.81%
Rates/Commodities: 10-Year Treasury yield -7.4 basis points to 2.74%, WTI crude oil +5.51%, COMEX gold -1.63%

Global equities managed to end the week in positive territory, though volatility persisted as traders’ attention shifted from upbeat news on tariffs and trade to the potential for increased regulation in the technology sector. Continue reading