Market Newsletters

In June, The Federal Reserve Bank (FED) came to the rescue of equity markets once again and propelled them to new highs. The S&P’s 500 rose by 7.05%. The Nasdaq Composite added 7.51% and the Russell 2000 (US Small Caps) 6.87%. It was more of the same with international markets. The S&P EPAC BMI (developed markets) rose 5.57%, emerging markets were up 6.24% (MSCI EM) and frontier markets a lesser 3.90%.

A violent and unexpected setback in the trade negotiations between the US and China sent equities sharply down across the globe in May. The S&P’s 500 dropped 6.35%. The Nasdaq Composite swooned 7.79% while the Russell 2000 (US Small Caps) slumped 7.78%.

April was another good month for equity investors! It seems as if the end of 2018 just a bad and now distant dream. The S&P’s 500 rose 4.05% in March. The Nasdaq Composite added 4.77% while the Russell 2000 (US Small Caps) ros 3.81%.

The back and forth between bulls and bears during the month of March saw the bulls finally overcoming their foes in the last third of the month.
The S&P’s 500 rose 1.94% in March. The Nasdaq Composite added 2.70% while the Russell 2000 (US Small Caps) surprisingly declined -2.09%.

February was another “risk-on” month. Investors poured money back into stocks after many had missed, or partially missed, the spectacular market rebound in January. The S&P’s 500 rose 3.21%. The Nasdaq Composite added 3.60% while the Russell 2000 (US Small Caps) rose 5.20%.

After four months of violent market movements, any investor could be easily excused for feeling a little lightheaded. Keeping one’s composure has been essential in order to avoid making serious portfolio-damaging mistakes. The unusual and large recent market ups and downs have had the potential to destroy otherwise well-balanced portfolios. Not moving, or not moving much and with clear purpose, was key.

The S&Ps’ 500 sunk 9.03% in December. The Nasdaq Composite went along with a 9.40% drop and the Russell 2000 (US Small Caps) was down 9.92%. Internationally, things were a bit less dramatic. The S&P EPAC BMI (developed markets) was down “only” 5.17% while emerging equities were down a comparatively low 2.92% (MSCI EM) and 3.40% (Frontier 100 Index).