June 08, 2020
Ending on June 3rd, the S&P 500 had the biggest 50-day rally in its history, gaining 37.7% over that period, and the NASDAQ Composite Index set a new all-time high on June 7th. As of the date of this letter, every stock in the S&P 500 is up over the last 10 weeks. S&P 500 valuations are the highest in nearly 20 years, as investors apparently think corporate profitability will dramatically increase relatively soon. The most common question we are receiving from clients is whether this rally can be sustained.READ MORE
April 03, 2020
As we continue to track the COVID-19 situation and assess its impact on financial markets, we wanted to share some of the resources we’re monitoring on a daily basis. Useful data is scattered across the internet, so we look at a variety of sources to get a fuller picture of how various states and countries are handling the pandemic, particularly how case and death curves are trending.READ MORE
March 13, 2020
First, and most importantly, we hope you are doing well and staying safe.
The longest bull market in the history of US equities came to an end this week as the S&P 500 fell more than 20% from its peak in breathtaking speed. As of yesterday’s market close, the S&P 500 is down 26.3% from that peak and 22.9% YTD. Small- and mid-cap stocks once again underperformed the S&P 500, and international equities also swooned. Risky credit such as corporate high yield and emerging market debt also suffered significant losses, but not to the extent of equity market losses. READ MORE
February 25, 2020
In the last several days, fears about the Coronavirus spreading have resulted in a “risk off” environment in financial markets: equity markets globally have lost value and US Treasury prices have risen. As of the time of this letter, on February 25th, the S&P 500 is down 7.2% from its peak , the MSCI Emerging Market Equity Index is down 8.00% from its recent high, and the yield on the 30-year US Treasury Bond is at an historic low of 1.79% (bond yields move in the opposite direction from price).READ MORE
Will the definition of what it means to be an accredited investor change in the near future? In December of 2019, the SEC voted to propose an amendment that would allow a greater number of individuals and institutions to qualify as accredited investors—increasing the eligible participation within private markets. Financial Advisors IQ reached out to Managing Shareholder and Team Lead, Kevin Fitzwilson, to gauge his thoughts on the proposed change. Read Kevin’s response in their article here.
Best wishes for a happy, healthy, and prosperous New Year. As 2020 begins, we wanted to provide you with: (1) a 2019 financial market review, (2) a snapshot of where we are currently, and (3) some thoughts going forward. READ MORE
Detlef’s Interview with Chase Jarvis
Detlef Schrempf touches on the importance of giving back during his interview on the Chase Jarvis Live Show. Thanks, Detlef for this great reminder to be grateful for life’s blessings and give back. The perfect sentiment and start to this holiday week.
Listen to his podcast interview here.
Investing in a Time of Tweets and Tariffs
By Howard Coleman, Chief Investment Officer & General Counsel
Coldstream Chief Investment Officer & General Counsel, Howard Coleman, wrote an article for One Accord on market volatility between August and early September. He provides important information on how investors should respond to volatility caused by tweets and trade tariffs.
To read the full article on One Accord, click on this link.
By Rafael A. Villagran, Portfolio Manager
Markets started the year on a sprint, and that’s encouraging, particularly in light of how stocks finished 2018. But investing is a marathon and we always keep our focus on the longer-term. And, putting the first quarter rally into context, stocks just climbed back up to where they were last September/October prior to the fourth quarter pull-back. We see two primary drivers behind the recent bounce: READ MORE