Market Newsletters

The S&P’s 500 rose 10.95% on a total return basis. The Nasdaq Composite was up 11.91% and the Russell 2000 (Small US Caps) rose even more, clocking a 13.82% monthly performance. The removal of uncertainty associated with the US election, the mixed political signal it sent and, more importantly, the announcements by Pfizer and Moderna that they both had developed highly effective vaccines to fight the current pandemic, all contributed to pushing equities to new highs.

The S&P’s 500 ended the month of October down 2.66% on atotal return basis. The Nasdaq Composite dropped 2.26% whilethe Russell 2000 (Small US Caps) was down a milder .64%.Internationally, the broad EPAC BMI (developed economies) wasdown 3.69% while the MSCI EM (emerging markets) counteredthe negative trend and delivered a positive 2.06% return in October.Small US Caps) was down a milder 1.95%. Internationally, the broad EPAC BMI (developed economies) was down 2.51% and the MSCI EM (emerging markets) a smaller 1.60%.

After relentlessly moving up in July and August, US equity indices reversed course in September. The S&P’s 500 ended the month down 3.80% on a total return basis. The Nasdaq Composite dropped a sharper 5.10% while the Russell 2000 (Small US Caps) was down a milder 1.95%. Internationally, the broad EPAC BMI (developed economies) was down 2.51% and the MSCI EM (emerging markets) a smaller 1.60%.

August was another high-performance month for equities in the US and around the world. A combination of ultra-loose monetary conditions globally and encouraging economic news propelled indices to all-time highs.
The S&P’s 500 ended the month up 7.19% on a total return basis.

The Nasdaq Composite rose 9.70%, while the Russell 2000 (Small US Caps) was up 5.63%. Internationally, the broad EPAC BMI (developed economies) was up 5.29% and the MSCI EM (emerging markets) a much smaller 2.21%.

Equities rallied globally yet again in July fueled by a combination of better-than-expected second quarter corporate earnings, an unprecedented general agreement among European nations with grants and low interest rate loans and a weakening USD.

S&P’s 500 ended the month up 5.64% on a total return basis. The Nasdaq Composite rose 6.85%, while the Russell 2000 (Small US Caps) was up 2.77%. Internationally, the broad EPAC BMI (developed economies) was up 4.5 and the MSCI EM
(emerging markets) a larger 8.91%.

Equities continued to rally in June, albeit at a slower pace. The S&P’s 500 ended the month up 1.99% on a total return basis. The Nasdaq Composite rose 6.07%, while the Russell 2000 (Small US Caps) was up 3.53%. Internationally, the broad EPAC BMI (developed economies) was up 2.85% and the MSCI EM (emerging markets) a larger 7.85%.

The general market rise was associated with the gradual re-opening of most economies around the world. In the US, the positive market move in June was not without volatility, as illustrated in the chart below.

The upward movement in equity markets worldwide continued in May, albeit at a slower pace. The S&P’s 500 was up a robust 4.76% while the Nasdaq went up 6.89% and the Russell Small Cap index 6.51%. As of the end of May, US equities had recouped close to 95% of their 2020 losses. The speed at which the correction took place was unprecedented and so has been the rebound.

Internationally, all indices rose but generally less spectacularly than their US counterparts. The S&P’s EPAC BMI (developed economies) rose 4.56%. Emerging market indices were up 3.29% (MSCI EM) and 3.97% (MSCI Frontier 100). The USD was down a bit In May, causing some export driven developed economies (Germany, Japan) to finally outperform. The DAX was up 9.37% in May and The TOPIX was up about 7.05%.

In April, US equity indices bounced powerfully up from the lows reached at the end of March, recouping up to 50% of their peak to trough losses (February 19 to March 23). The S&Ps’ 500 finished up 12.35%. The Russell 2000 jumped 13.74% while the Nasdaq continued to do better than all, rising 15.49%.

Internationally, all indices rose but once again less meaningfully ..

March was a month worthy of the record books. Investors suffered massive losses, on a worldwide basis. No significant asset class was spared. The S&Ps’ 500 lost 12.35%. The Russell 2000 went down 19.49%, while the Nasdaq fared a bit better, going down 10.03%. Internationally all indices dropped, often more than their US counterparts as a result of a rising USD (up 3%). The S&P’s EPAC BMI (developed economies) went down 14.05%. Emerging market indices went down from 15% (MSCI EM) to 22% (MSCI Frontier 100).

In February, COVID 19 finally overwhelmed US equity markets. The S&Ps’ 500 lost 8.53%. The Russell 2000 went down 8.67%, while the Nasdaq fared a bit better, going down “only” 6.27%. Internationally all indices dropped, often more than their US counterparts as a result of a rising USD. The S&P’s EPAC BMI (developed economies) went down 9.28%.

US equities finished January with contrasted performances. The S&P’s 500 was down .04%, while the Nasdaq Composite finished up 2.03% over the same period. The Russell 2000, meanwhile, was down a sharp 3.21%. Internationally, all indices were down with the S&P’s EPAC BMI (developed economies) weakening 2.39% and the emerging market MSCI EM index down 4.66%. The threat to global economic growth that the Coronavirus epidemic presents explains all of this negativity.

Equities finished the year exuberantly. The S&P’s 500 rose 3.02% while the US Small Cap index progressed 2.88% and the Nasdaq Composite 3.63%.
Internationally, the USD declined and made it possible for most indices to rise, sometimes spectacularly. The EPAC BMI (developed economies) rose 3.47%.
In emerging markets the MSCI EM raced upward 7.46% while the Frontier 100 Index rose a solid 3.15%.