Market Newsletters

During November the S&P’s 500 went down .69% on a total return basis. The Nasdaq Composite managed a small .33% gain and the Russell 2000 (small caps) dropped 4.17%. Internationally,
the rapid rise of the USD caused the EPAC BMI index (developed economies) to slip by about 5% while the MSCI EM (emerging markets) lost 4.08%

Equity markets bounced back up with a vengeance in October. The S&Ps’ 500 was up 7.01%, the Nasdaq Composite up 7.29% and the Russell 2000 (small caps) 5.95%. Internationally, the performance of the EPAC BMI index (developed economies) paled in comparison with a mediocre 1.91%. The MSCI EM (emerging markets) was worse with a .99% monthly performance.

A confluence of factors caused equity markets to fall in September. The S&P’s 500 went down 4.65% on a total return basis. The Nasdaq Composite was down 5.27% and the Russell 2000 (small caps) 2.95%. Internationally, the EPAC BMI index slipped 3.31% while the MSCI EM (emerging markets) lost 3.95%. A rising USD did not help European equity markets. The USD was up 2% in September against the Euro and is up 5.35% so far in 2021.

August was yet another spectacular month for equities worldwide. The S&P’s 500 went up 3.04% on a total return basis. The Nasdaq Composite was up 4.08% and the Russell 2000 (small caps) 2.24%.
Internationally, the EPAC BMI index was up 1.55% while the MSCI EM (emerging markets) rose 2.62% and frontier markets registered a positive performance of 3.30%. US fixed income markets went slightly down (from -.20% to -.35%), with the exception of the high yield sector (+.51%).

In July, the performance of US equities fluctuated significantly from one sector to another. The S&P’s 500 was up 2.38% on a total return basis. The Nasdaq Composite was also up 1.19% but the Russell 2000 (small caps) was down 3.61%.
Internationally, the EPAC BMI index was up a mere .32% while the MSCI EM (emerging markets) shrunk 6.73% and frontier markets registered a positive performance of.15%.

In June, US equities continued to forge ahead, with a return ofgrowth stocks to the fore. The S&P’s 500 was up 2.33%on a total return basisbut the Nasdaq Composite was up even more with a 5.55% performancewhile the Russel2000 (small caps) wasup1.47%. Internationally, arisingUSD hurt developed market equities. The EPAC BMI index was down .97% while …

In May, US equities progressed unequally, depending on sectors. The S&P’s 500 was up .70% on a total return basis. But the Nasdaq Composite was down 1.44% while the Russel 2000 inched up a mere .21%. The rotation that has favored “value” and “traditional economy” stocks continued at the expense of the tech sector.

April was a blockbuster month for equities worldwide and particularly
in the US as further signs of economic rebound combined with stable interest rates and a good start to the corporate first quarter earnings season encouraged investors to commit more. The S&P’s 500 rose a whopping 5.34% on a total return basis. The Nasdaq Composite was up 5.43%. The Russell 2000 (Small US Caps) was up a more modest 2.10%.
Internationally, investors’ enthusiasm was more contained with the rate of vaccination accelerating but well behind that of the US and an eventual re-opening of economies pushed farther into the future.

In March, equities generally continued their progression but not without several reversals along the way. The S&P’s 500 rose a solid 4.38% on a total return basis. The Nasdaq Composite was up a mere .48% as the rotation in favor of “value” stocks continued at the expense of the technology sector. The Russell 2000 (Small US Caps) was up 1.00%.
Internationally, the EPAC BMI (developed economies) was up 1.84% and the MSCI EM (emerging markets) sunk 1.51%.

February saw most equity indices rise, sometimes sharply, in spite of a late reversal in the month due to rising interest rates. The S&P’s 500 rose 2.76% on a total return basis while the Nasdaq Composite was up 1.01% and the Russell 2000
(Small US Caps) continued to catch up, rising 6.23%.

Internationally, the broad EPAC BMI (developed economies) was up 2.37% and the MSCI EM (emerging markets) a more modest .76%. The USD was mostly stable against a basket of diversified trading partners’ currencies, although it did rise 1% against the €.

January offered a mixed picture for equity markets in general. The S&P’s 500 dropped 1.01% on a total return basis while the Nasdaq Composite was up 1.44% and the Russell 2000 (Small US Caps) rose 5.03%, continuing on its strong year-end trend.

Internationally, the broad EPAC BMI (developed economies) was down .88% but the MSCI EM (emerging markets) rose 3.07%. Unusually when small US capitalization stocks and emerging market equities rally, the USD rose by about 1.33% against a basket of diversified trading partners’ currencies.

nertia is a powerful force of nature! Equity markets moved up again in December, following their incredible performance of November. The S&P’s 500 rose 3.84% on a total return basis. The Nasdaq Composite was up 5.71% and the Russell 2000 (Small US Caps) rose even more, with a 8.65% monthly performance. Revived talks, eventually successful, of a stimulus package of a little over $900 billion kept equity markets on their positive trend and pushed all indices up, stateside as well as internationally.