Markets

What is the Culprit(s) for Recent Equity Weakness? August 19, 2021

Posted by Steven Vannelli, CFA in Markets

Just when everyone thought we had COVID-19 whipped, the delta variant came along and US cases inflected higher. The 7-day moving average was about 13,000 in early July and has jumped about 10-fold to 132,000 as of yesterday. The first place this can be seen…

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Breakdown July 23, 2021

Posted by Steven Vannelli, CFA in Economy, Knowledge Leaders, Markets

We believe the technology sector is broadly breaking down. ​​​​​That’s the bad news. The good news is that the correlation between pure growth stocks and pure value stocks has plunged. This means that growth only explains about 5% of the movement in value stocks right…

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Is the Re-Opening/Value Trade Over? July 07, 2021

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

Interest rates have been falling in recent months leading some to speculate that the “re-opening” trade has run its course. This in turn begs the question as to whether the “value” trade is over. On both accounts, we see signals that still point to an…

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Is the Cyclical Trade Over or Just Pausing? June 18, 2021

Posted by Bryce Coward, CFA in Markets

This week the Federal Reserve made its first hawkish surprise to monetary policy since December 2018. As opposed to December 2018, when the Fed actually raised rates for the final time in the cycle, the Fed this week signaled rate increases potentially starting in 24…

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Is Secular Leadership in US Technology Over? May 20, 2021

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

We believe the US technology sector has reached a level of valuation such that it is has the potential to substantially subtract from portfolio returns going forward. In this mid-quarter update, we: -Highlight how we monitor valuations in the global stock markets while shining a…

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The Market Is Looking Through Hot Inflation, For Now May 14, 2021

Posted by Bryce Coward, CFA in Markets

This week saw some doozy inflation readings beginning on Wednesday with the CPI reading and then again on Thursday with the PPI. CPI came in at 4.2% year-over-year, but a whopping 0.8% month-over-month. For context, 0.8% MoM implies 10% annualized inflation! The PPI was also…

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