Markets

Developed Asia Responds to Bank Troubles March 15, 2023

Posted by Tom Nemechek in Economy, Markets

The fallout from the Silicon Valley Bank collapse and the continued troubles of other lenders has not been contained to the Western Hemisphere. Market implied policy rates for developed markets in Asia responded quickly and forcefully to fears of banking contagion from the US and…

Fed Repriced Out of Action March 13, 2023

Posted by Steven Vannelli, CFA in Economy, Markets, News

We just experienced the fastest bank run in history with the closure of Silicon Valley Bank. Apparently over 40% of the company’s deposits fled last Thursday and early Friday before closure. To put this is context, when Continental Illinois—at the time, the largest ever bank…

The US and China: The Tech Cold War Continues March 07, 2023

Posted by Brian Clark in Markets, News

For decades since the end of the Cold War there have been very limited restrictions on foreign investments by US investors compared to those of other countries. This has allowed US investors to transact in a wide array of international investment options. Indeed, following the…

Nikkei 225: A Long-Term Technical Pattern Like No Other in the World March 06, 2023

Posted by Steven Vannelli, CFA in Markets

The Nikkei 225 (NKY) peaked in December 1989, and in local currency, has yet to reach the previous peak. But, I look at stocks from the standpoint of a US investor, meaning any foreign asset needs to be translated into USD. Yes, one can hedge…

North America Sector Performance Since the October Low March 02, 2023

Posted by Brian Clark in Markets

North American developed market large-mid stocks (United States and Canada) bottomed simultaneously with other developed markets on 10/12/22, recovering over 10% since then. Also since October, the Bloomberg North American Large-Mid Index has experienced a “golden cross” wherein the 50-day moving average rises above the…

Does European Equity Performance Point to End of Bear Market? March 02, 2023

Posted by Austin Mann in Markets

Earlier this week, Steve wrote about developed market performance since the low on 10/12/22. Here, I take a deeper dive into the performance of European stocks since that date. The Bloomberg Europe DM Large-Mid Index bottomed on 9/26/22 at 854.46, and after a short blip…

Developed Market Performance Since the 10/12/22 Low February 28, 2023

Posted by Steven Vannelli, CFA in Markets

Stocks ground into a low on October 12, 2022, and have since recovered about 15.21%. The Morningstar Developed Markets Large-Mid Cap Index has also experienced a golden cross where the 50-day moving average rises through the 200-day moving average. Generally, I view a security trading…

European Markets Grapple with Nagging Reality February 23, 2023

Posted by Austin Mann in Economy, Markets

Investor concerns over the potential for poor European growth in the foreseeable future have eased thanks to the flurry of economic data coming out stronger than expected this year. That same data though has led investors to again fear what they thought was behind them…

Japan’s Non-Inflation Scare February 22, 2023

Posted by Tom Nemechek in Economy, Markets

The Japanese Government Bond 10-year breakeven inflation has run contra to recent worldwide trends as one of the few sovereign rates of its kind to decline year to date. Where the rest of the world has moved on from a “growth scare” to an “inflation…

Fed’s Policy Path Back in Center of Attention February 22, 2023

Posted by Brian Clark in Economy, Markets

Investors’ fears over a slowing US economy have seemingly been replaced with renewed fears over inflation and the possibility of a more hawkish stance by the Federal Reserve. Despite progress on lower goods inflation and signs that economy was cooling in December, price pressures have…

Mid-Quarter Update: The Globalization Myth February 17, 2023

Posted by Steven Vannelli, CFA in Economy, Markets

The common narrative is that we’ve (the US) been enjoying a long period of globalization and now that it is going into reverse, it will upend many of the benefits brought by globalization, to the US in particular. We think this is the wrong way…

Turkey Drags Down Emerging Markets EMEA Stocks February 15, 2023

Posted by Austin Mann in Markets

Last week, I dissected developed markets EMEA (DM EMEA) stock performance by sector and found that the consumer discretionary sector was driving upward performance. This week, I dig into emerging markets across the European, Middle East and Africa region. We use our Mid-Large emerging markets…

Brazil: Dragging Down EM Americas Performance February 14, 2023

Posted by Brian Clark in Markets

Last week I looked at how Canadian stocks underperformed US stocks this year, decomposing North American Performance. This week I take a look at EM Americas performance. First, I look at the Mid-Large EM Americas universe, which includes the top 85% of stocks for market…

Consumer Discretionary Sector Has Driven European Equity Performance YTD February 10, 2023

Posted by Austin Mann in Markets

As inflation fears have receded somewhat—though we’ll see in next week’s US CPI report how much they really have receded—European stocks have had a good start to the year. In the table below, I take the top 85% by market cap of large-mid firms from…

Why is the U.S. Market Trouncing Canada Year-to-Date? February 08, 2023

Posted by Brian Clark in Markets

So far this year, American stocks have outperformed Canadian stocks. In this post I’ll look at recent performance of equities in the U.S. and Canada to understand what drove the difference between the two countries’ equity performance year-to-date. For this analysis, I start by taking…

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