After five consecutive months of negative US equity market performance, October produced a sharp reversal and US equity markets exhibited the best monthly performance since 1987 (Dow up +9.7%; S&P 500 up +10.9%; Russell 2000 up +15.1%). The industry sectors that performed most poorly over the past six months were the same sectors that rebounded [...]
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Monthly Commentary – September 2011
Posted on 07. Nov, 2011 by Ashok Gangolli.
The fear trade was in its highest gear in September with virtually all asset classes getting clobbered with the exception of intermediate and long-term US Treasury bonds, long-term Corporate bonds, and the US Dollar. US stock markets ended the 3rd quarter with the worst performance since the depths of the financial crisis in the Fall [...]
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Monthly Commentary – August 2011
Posted on 06. Sep, 2011 by Ashok Gangolli.
So much for a slow month to end the summer, August was the most volatile month in equity markets since the financial crisis in 2008. The month started off with the US Congress waiting until the very last minute to agree upon terms to raise the federal debt ceiling in a compromise that leaves most [...]
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Monthly Commentary – July 2011
Posted on 29. Aug, 2011 by Ashok Gangolli.
July was dominated by the impending US Congressional standoff on raising the debt ceiling limit and continued concerns in Europe over the Greek bailout and the contagion effects of the sovereign debt crisis. Towards the end of the month the US reported disappointing GDP growth numbers for 2Q11 (+1.3% vs. +1.7% expected) and a sharply [...]
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Monthly Commentary – June 2011
Posted on 23. Jul, 2011 by Ashok Gangolli.
June was a roller-coaster month for risk markets with the “PIIGS” sovereign debt crisis once again taking center stage. The Greek government had to overcome a confidence vote, pass through unpopular austerity and privatization measures, and go on a road show to garner EU and IMF support for additional bailout funds that ought to keep [...]
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Monthly Commentary – May 2011
Posted on 23. Jul, 2011 by Ashok Gangolli.
There is an investment adage: “Sell in May and go away” to suggest that investors are better off being out of the market than in during most months of May. This year was no different in the risk markets as the very strong returns from April in risk markets in part reversed. It started with [...]
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Monthly Commentary – April 2011
Posted on 03. May, 2011 by Ashok Gangolli.
The month of April saw a resurgence of equity markets (S&P 500 up +2.9%) as strong 1st quarter 2011 earnings, combined with a weaker US dollar, to propel domestic equity markets higher. The US dollar weakness (down -4.5% vs. the Euro; down -6.2% vs. the Australian dollar; and down -3.0% vs. the Brazilian Real) was [...]
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Monthly Commentary – March 2011
Posted on 04. Apr, 2011 by Ashok Gangolli.
March saw tremendous volatility caused by the unfortunate earthquake and tsunami in Japan, followed by the partial meltdown of nuclear reactors in Fukushima and concerns of spreading radiation. The Libya ‘situation’ took center stage in the global political front with the NATO forces commencing enforcement of a ‘no-fly’ zone causing oil prices to continue to [...]
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Monthly Commentary – February 2011
Posted on 04. Apr, 2011 by Ashok Gangolli.
February saw the sixth straight month of positive US equity market gains amidst increased geopolitical risks, significantly higher oil prices, and central bank rate hikes in emerging market countries such as China, Indonesia, and Brazil (on 2-Mar). With investor flows fleeing emerging market equities and both taxable and municipal US fixed income markets, the US [...]
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Monthly Commentary – January 2011
Posted on 14. Feb, 2011 by Ashok Gangolli.
January was mixed for global markets as some trends reversed, notably emerging market equities and gold, while others continued with renewed vigor, notably large cap US equities and European equity markets. Emerging markets had a decisive pull back due to concerns over rising inflation (particularly food inflation) and the expected central bank monetary tightening to [...]
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