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CIO Insights

April 2021 

April 2021 

Amidst the events of the past year, much investor focus has centered around US markets and the US economy. Often lost in this discussion is how international markets have fared and what the outlook is for international markets. International markets can comprise a part of a well-diversified portfolio and for this month’s Insights, I thought it would be helpful to provide a bit of a primer and commentary around investing internationally via a Q&A format.

February 2021

February 2021

As 2021 has begun, markets and asset prices have continued to march onward and upward. We’ve also seen some frenzied activity in certain individual stocks (i.e. GameStop and AMC) and in cryptocurrency. This has led some to question if this activity in the market periphery is something that they should be concerned about and/or participate in. The overall level of the market is also being called into question by some as we have seen great performance in equity markets in spite of COVID challenges and political unrest and division. In this month’s comments, we’ll explore the following themes and the considerations for investors:

December 2020

December 2020

As the dust has somewhat settled on a chaotic and contentious election cycle, I wanted to share some observations on the events of the past month as they relate to capital markets and your investments. At the time of this writing, the Dow Jones Industrial Average just posted the highest monthly gain since 1987 (up 11.8%) and investors continue to be amazed at market performance against the backdrop of an ongoing pandemic and related economic headwinds. Below are four observations that have been apparent over the past month:

October 2021

October 2021

It has become cliché to talk about 2020 as a historic and wild year, but it truly has been just that. In financial markets, we have seen record volatility and huge price anomalies. Consider just a few:

  • The S&P 500 index fell by over 30% from February 19 through March 23. This was the fastest decline to 30% in market history
  • From March 23 to present the S&P rose nearly 51% and notched the fastest recovery in history
  • As a result of economic stimulus and caution by investors and corporations, there is over $8 trillion dollars in cash on the sidelines. This is a record both in relative and absolute terms
  • The spread between growth (think Microsoft, Google, Regeneron Pharmaceuticals, etc.), and value stocks (Chevron, US Bank, Proctor and Gamble, etc.) year to date is over 34 percentage points. Growth is up nearly 27% while value down nearly 8%. We’ve seen a tale of two markets.
  • Interest rates are near all-time lows and last spring, rates in the United States temporarily went negative. Rates are historically low by nearly any measure: