Markets Move Higher after a Fearful Mid-Year decline
In Market Analysis onRead moreAt the end of the 2nd quarter, stocks were in a severe correction, having dropped over 15% in just over 2 months. The market reached a bottom on July 2nd and made a healthy advance into the end of the quarter. Our system re-entered stocks in early September. At the end of the quarter, our proprietary accounts were fully invested
Stock Market Drops in Second Quarter
In Market Analysis onRead moreShortly after the market hit bottom in April of 2009, we wrote that after major declines, gains were historically “decisive and significant.” The market affirmed that projection with an advance off the bottom of 65% by the end of 2009. That gain, along with robust GDP growth in the first quarter of 2010, led many to believe that the markets
Gains Continue into the Fourth Quarter
In Market Analysis onRead moreDuring the most recent quarter, the S&P continued its impressive rise and advanced 6.02%. Throughout the quarter, our proprietary models remained fully invested (with the exception of a 3 day partial sale out of Emerging Markets in some portfolios). In fact, we have remained fully invested in US and Developed International stocks since we entered the markets in late March
Emerging Markets and our Dynamic Hedging Strategy
In Market Analysis onRead moreInvesting in emerging markets has the potential to generate high returns and also bring potential diversification benefits. Our case for emerging markets is justified by four principal causes: · Emerging markets (EM) possess a high rate of growth of GDP relative to developed countries · Emerging markets are expected to be an increasing percentage of global GDP Emerging markets return
Stock Market Makes Significant Gains for Quarter
In Market Analysis onRead moreIn our last commentary, we looked at the powerful nature of rebounds following large stock market drops. Our conclusion was that large stock market losses have historically been followed by significant moves higher. Historians will be heartened that, once again, history is repeating itself. During the 2nd Quarter, stocks had their best return since the 2nd quarter of 2003 with