September 5, 2018—At the end of September, the S&P 500 index is getting a makeover. Below we answer the four most pressing questions related to the changes.1) What is happening?On September 30, 2018 Standard & Poor’s is reshuffling their sector schematic, which will include redefining the existing technology, consumer discretionary, and telecommunications sectors.
August 7, 2018— Now that the S&P 500 earnings calendar has seen the second quarter come and go, most companies have reported results that reflect another stellar earnings season. More companies—over 80%—beat earnings in the second quarter than during any point since the mid ‘90s, when data started being tracked. On average, earnings beat analysts’ estimates by about 5%.
July 27, 2018—Emerging markets (EM) assets have had a rough go of it this year, to say the least. EM equities are down 13% from their January highs, and currencies have been similarly challenged. The combination of a tightening Fed, a stronger dollar, trade tensions, and slowing global growth have compounded with country-specific concerns to weigh on EM assets.
We have held an overweight to EM equities since November 2016, which has been a drag on performance this year.
July 13, 2018— The slope of the yield curve has continued its relentless slide this month, with the yield differential between a 10-year and a 2-year Treasury bond falling below 0.27%. The closer this figure gets to zero, the more suspect investors become about whether the economy can withstand higher interest rates from the Fed.
June 19, 2018—It’s not just the warm weather on the East Coast that is heating up these days. It is also the escalating friction between the U.S. and its trading partners, China in particular. The Trump administration has imposed a series of tariffs that are either in or will soon be in effect on a spectrum of goods—ranging from washing machines to steel and aluminum—that, as of Friday, will include an additional $34 billion of imports from China.