Market Newsletters

July was a decidedly good month in an otherwise dismal year. The S&P’s 500 erased its losses from June with a 9.22% performance. The Nasdaq Composite did even better, clocking a 12.39% jump while the Russell 2000 (Small Cap Index) added 10.44%.

Internationally, performances were generally positive, if more muted, due to a relentlessly rising USD. The EPAC BM Index of developed economies rose 5.23% but emerging markets declined with the MSCI (EM) down .25%.

June has been the worst month of 2022 for investors, so far. The S&P’s 500 tumbled 8.25%, while the Nasdaq Composite fell 8.65% and the Russell 2000 (Small Cap Index) sunk 9.98%. Internationally, the situation was not better with the EPAC BM Index of developed economies down 10.02%. Meanwhile,
emerging markets did a bit better again in June with the MSCI (EM) down only 6.64%.

April turned out to be one of the worst months for investors in recent memory, if we except March 2020, when the magnitude of the Covid pandemic became clear. The S&P’s 500 went down 8.72%. The Nasdaq sunk 13.24% and the Russell 200 (Small Cap Index) lost 9.91%. The situation did not turn out much better internationally where the EPAC BM Index dropped 7.00%.

April turned out to be one of the worst months for investors in recent memory, if we except March 2020, when the magnitude of the Covid pandemic became clear. The S&P’s 500 went down 8.72%. The Nasdaq sunk 13.24% and the Russell 200 (Small Cap Index) lost 9.91%. The situation did not turn out much better internationally where the EPAC BM Index dropped 7.00%.

Volatility and divergence were the two themes of the month of March for investors. If US equities managed to progress overall, volatility was high and reversals numerous. Meanwhile, as US equities advanced, fixed-income markets suffered some of the largest losses ever seen in such a short amount of time. The chart below illustrates this dichotomy.

The beginning of 2022 is proving to be an anxious one for equity investors in the US and across the globe, for a variety of reasons that I will develop later in this newsletter. In February, the S&Ps’ 500 went down 2.99%. The Nasdaq Composite suffered more, with a loss of 3.35%. The Russell 2000 (small caps) did marginally better, registering a milder .72% loss.

Internationally, developed markets declined, with the S&P Epac BMI down 1.72% and emerging markets dropping more, with the MSCI Emerging Markets down 2.99%.

The year started anxiously for most investors. Inflation fears coupled with uncertainty about the pace and depth of the Federal Reserve’s monetary response pushed market volatility significantly up. Equities went down across the globe, with few exceptions other than for equity markets tied to oil. The S&Ps’ 500 went down 5.17%. The Nasdaq Composite suffered more with a loss of 8.96%, after entering correction territory earlier In the month. The Russell 2000 (small caps) registered a 9.63% loss. Internationally, developed markets declined with the S&P Epac BMI down 5.80%.

Major equity markets performed spectacularly in December. The S&P’s 500 rose 4.48% on a total return basis. Internationally, the EPAC BMI index of developed economies rose 4.78%. The MSCI EM index of emerging markets rose only 1.88%, reflecting the likely greater impact on developing economies of the Omicron variant. Domestically, the Nasdaq Composite suffered comparatively with a meager .74% gain while the Russell 2000 (small caps) did better with a 2.23% performance.