Market Environment We hope everyone is enjoying the summer. Since our May update, markets have largely unfolded as anticipated. Strong corporate earnings, resilient economic growth, and continued investment in artificial intelligence infrastructure helped propel U.S. equities to new all-time highs in early June. In mid-June, markets entered a period of consolidation as investors digested [...]
We hope that everyone is well and looking forward to the summer. It has been an interesting year, and we suspect we shall encounter a few more surprises as we head into the second half of the year. Market moves have been quick and rather dramatic. The violent and swift nature of both the March [...]
Overview- 2025 was a good year for risk assets. The market moved into a choppy range bound trade during the 4th Quarter, as concerns over valuation in the AI space put a lid on the rally for the year. Our outlook for 2026, based on current expected earnings forecast and underlying fundamental strength in the [...]
Overview- The rally in the equity market has built momentum during the third quarter. When we penned our second quarter outlook, the market had barely broken out above the highs of 2024, but the market has now extended about 10% above last year’s high. While the labor market is showing signs of weakening (this [...]
Overview- 2025 has been an exciting year between war, tariffs, inflation, and so on. Regardless of the volatility, the market hasn’t moved too much since last year, so we have reserved judgement until things are a bit clearer. Our expectation is that, barring any further surprises, there is potential for the market to move [...]
Overview- After a sharp post-election rally, the broad equity market pulled back towards the end of the year and finished mixed for the 4Q. The Cap Weighted S&P 500 was up 2.5%, while the Equal Weight S&P declined -1.9%. Mid and Small cap were negative by -1% to -2%, and international was down over [...]
Overview- The market moved higher in Q3, with the S&P 500 up +5.8%. The market rally appears to be broadening with Midcap, SmallCap and Value doing as well as if not slightly better than the S&P 500. This is a marked contrast from the first half of the year, where the top 10 names [...]
Overview- We expected equity markets to pause after they ran higher in Q1. In fact, most of the market did just so: For 2Q Small Cap stocks were -3.1%, Mid-Caps were -3.5%, the Dow Jones Ind Avg was -1.3% and the average stock in the S&P 500 was -2.6%. Remarkably, the Cap Weighted S&P 500 [...]
Overview- The equity market continued its ascent during the first quarter, but it is showing signs of needing a pause to refresh. Below are the factors that may give the market a break from its current uptrend. Valuation- While market valuations are expensive, valuation is rarely a harbinger of short-term changes in the market. [...]
Overview- The last 2 years have been full of surprises in all markets, and this year may well hold a few more. We wanted to highlight several market factors that help influence the composition and allocation in our portfolios. Below is a brief synopsis of the key factors we evaluate when assessing the health of [...]