Archives of QUARTERLY NEWSLETTER

2Q:2019 Quarterly Update – Stocks Strong, But Slower Growth Ahead

MARKETS Stocks were strong in the second quarter. Investors pushed prices higher even as the economic environment became less encouraging. Two factors were primarily responsible for the bullish sentiment: The Federal Reserve raised the possibility that it might cut interest rates for the first time since December 2008. Anticipation rose that the US and China […]

1Q:2019 Quarterly Update – Investors Cheered as the Fed Turned Dovish

MARKETS Investors cheered as the Fed turned dovish. Stocks enjoyed a vigorous turnaround in the first quarter after enduring painful performance and sinking sentiment in last year’s fourth quarter. Fed chairman Jerome Powell pivoted from endorsing further interest-rate hikes in December to proclaiming “patience” in January as the Fed’s new guiding principle for monetary policy. […]

4Q:2018 Quarterly Update – Investor Worries Overwhelmed Fundamentals

MARKETS AND PERFORMANCE Investor worries overwhelmed fundamentals. A combination of worrisome factors—any one or two of which would normally be sufficient—drove stocks downward during the fourth quarter. The US trade war with China persisted. Global economic growth decelerated, particularly in China, sparking fears of corporate earnings declines, supply chain disruption and, potentially, a US recession. […]

3Q:2018 Quarterly Update – Volatility Up, Yet Growth Persists

It was a strong quarter for equities. Stocks scaled a wall of worry in Q3, driven by a mix of renewed synchronized global economic growth, robust Q2 earnings growth and strong Q3 forecasts. Companies found innovative ways to compete and excel. Credit markets faced challenges. US Treasury yields rose across the curve, reflecting increases in […]

2Q:2018 Quarterly Update – Divergent Trends Emerge in 2Q

US equity markets climbed higher in the second quarter, outperforming non-US developed and emerging markets. With investor appetite gravitating toward domestically oriented companies, smaller-cap stocks outperformed mid and large caps. Value names outperformed in small cap, but growth stocks beat in mid and large. Core bonds were slightly negative while convertibles posted healthy positive returns, […]