Investment Perspectives - Prime Buchholz

Market Perspectives

Commercial Real Estate: Doom, Gloom, and Opportunity

Commercial real estate (CRE) continues to make headlines due to distressed assets, portfolios, and balance sheets. Underlying stress is concentrated in the office sector, but is being felt in other sectors as well. For example, multi-family deals that were bought at peak prices in 2021-22 and levered up with floating rate debt. Outside of office, distress has largely been driven by broken balance sheets, as opposed to a decline in operations. Historically, downturns in CRE have created target-rich opportunity sets, producing some of the best vintages in private real estate and most attractive entry points into REITs. However, not all investments made during a downturn will outperform, so it is important to maintain a disciplined approach when navigating this market. In this investment perspective, we provide an overview of the CRE market and share strategies that may help investors capitalize on opportunities.

Market Perspectives

Dog Days of Summer – When Volatility Bites Back

Global markets experienced sharp selloffs from August 1st to August 5th. We saw mid-single-digit declines in equity markets with notable weakness in Japan and in U.S. small caps, which fell 18.2% and 8.8%, respectively. Even the mighty “Magnificent 7” were weak, leading to a 7.3% decline in the information technology sector. As a result of the large decline, the VIX spiked above 60—the third largest move in its history (behind October 2008 and March 2020). In this report, we will look at some main areas of market weakness to provide some context to the turbulent start to August.

Market Perspectives

2024 Fiscal Year Review

Fiscal Year 2024 proved to be a strong year, with double-digit gains of approximately 10% for a diversified portfolio, building off of gains of more than 11% in the previous fiscal year. Like the previous period, global equities experienced a robust rally in FY 2024 and were the main driver of returns. This was notable… Read more »

Market Perspectives

Bitcoin Milestones: Implications & Impact on Institutional Adoption

Implications of Spot Bitcoin ETF Approvals In January, the SEC approved 11 spot bitcoin ETF products, including products from notable investment management firms such as Blackrock, Fidelity, Invesco, and Van Eck. The new ETF products saw over $12 billion in net inflows during the first quarter, with Blackrock’s iShares Bitcoin Trust eclipsing $10 billion in… Read more »

Market Perspectives

Investment Perspective: Community Foundations – Driving Impact in a Dynamic Landscape

For over 100 years, community foundations have served as important partners in their communities, as grant-makers to nonprofits, sources of scholarship funds, and providers of general philanthropic support to address community needs. As public charities dependent on broad public funding, community foundations face increasing complexities managing their assets and the stakeholders they represent. In this investment perspective, we reflect upon the challenges facing community foundations and share strategies to enhance their impact by strengthening the resilience of their investment portfolios.

Market Perspectives

PrimePlus® – Revolutionizing Investment Analytics for the Empowered Investor

PrimePlus® helps users navigate the complexities of data management by seamlessly integrating data collection, synthesis, and visualization into a single, cohesive product. PrimePlus® is intended to meet these challenges—a platform thoughtfully designed to transform the client experience. By simplifying the integration of data management, multi-asset class analytics, and third-party systems, this platform has enriched the way our clients interact with their portfolios.

Market Perspectives

Investment Perspective: Efficiency-Driven Value Enhancement

Strategic rebalancing, participation in attractive time-sensitive opportunities, and efficient decision-making has the potential to generate portfolio performance, or “operational alpha.” Operational alpha refers to the concept of generating value by optimizing the operational aspects of institutional fund management. This involves reducing transaction costs, improving execution efficiency, and minimizing operational risks. By focusing on these operational aspects, we believe investors can not only better safeguard their portfolios from pitfalls, but also potentially unlock positive performance. In this investment perspective, we will examine the multifaceted role and significance of operational alpha from the viewpoint of an outsourced investment office, including implementation, trading, and custody services.

Market Perspectives

Investment Perspective: China at a Crossroads

China stands at a critical juncture, mired in one of its most severe market downturns since the nation’s equity market reopened in 1990. After reaching a near 30-year high in early 2021, the MSCI China Index fell nearly 60% over the following three years. In early 2021, a series of events negatively impacted Chinese markets,… Read more »

Market Perspectives

Investment Perspective: Back to the Future? Examining the AI Explosion

Since generative artificial intelligence (AI) tools became available to the general public in 2022, a clear consensus quickly emerged that AI will have a significant impact on our lives—perhaps even more significant than the internet. What are the implications of investing in AI and can we apply any lessons learned from the dot-com boom and bust to today’s market? It is natural for investors to wonder what to make of the recent gains of AI and AI-adjacent companies. History doesn’t repeat itself, but it often rhymes; thus, any analogies between the AI and internet booms are imperfect. However, analyzing the dot-com boom can potentially provide useful takeaways for the cautious investor.

Market Perspectives

Investment Perspective: Private Foundations – Driving Innovation in the Nonprofit Community

Successful entrepreneurs are often described as persistent, unconventional, disruptive and innovative. The same can be said for one of the more influential members of the nonprofit community: the private foundation. Like disruptive entrepreneurs, private foundations often view the world through an unconventional lens. They push boundaries and challenge consensus. Private foundations are responsible for drawing… Read more »

Market Perspectives

Investment Perspective: A Return to Irrational Exuberance?

Based on the S&P surpassing the 5,000 milestone and reaching all-time highs, inflation subsiding, and the U.S. economy appearing on the path to a soft landing, there are reasons to be optimistic about the market outlook. However, investor sentiment appears to be stretched and a shakeout of speculative pockets could occur. We also note that the potential risks posed by geopolitical instability and stress in commercial real estate are considerable and must be continually monitored. The recent rally could be an opportunity to trim equity exposure on strength in portfolios that are approaching the high end of their policy ranges.

Market Perspectives

Investment Perspective: The Outlook for Monetary Policy

In this investment perspective, we evaluate the current environment through the lens of the Fed’s dual mandate and attempt to reconcile the start date of when the easing cycle may begin.

Market Perspectives

Investment Perspective: Unwrapping the Market Dynamics Behind a “Santa Claus Rally”

The recent market rally has been driven by a confluence of factors; primarily declining interest rates, expected rate cuts by the Fed, improved corporate earnings, and short-covering of highly shorted, rate-sensitive equities. This positive momentum has historically improved the odds of a Santa Claus Rally in the year’s final market sessions that continues into early January.

However, January Opex has the potential to signal a vulnerability window as these seasonal factors dissipate. It is also possible recent Fed rhetoric alluding to conquering inflation could prove to be premature as stubborn structural inflation persists across global economies. A strong Santa Claus Rally into January may prove to be an opportune time for investors to trim gains and rebalance portfolios to ensure proper positioning in the event of an eventual rise in volatility and market weakness.

Market Perspectives

Unraveling OCIO Solutions: A Guide for Investors

The OCIO industry has surged in popularity in recent years, attracting diverse investors amidst market complexities. The challenging investment landscape of the last half decade has amplified the need for a steady hand and trusted guide at the helm.

In addition to more than three decades of experience and specialized expertise, Prime Buchholz offers an optimum blend of flexible service models, a deep understanding of the non-profit world, an aligned, independent ownership structure, and unique insights gained through our proprietary analytics platform.

Market Perspectives

Investment Perspective: Commercial Real Estate – Where Do We Go From Here?

Stress & Distress A steady stream of headlines highlighting distressed CRE assets and landlords paint a grim outlook for the asset class. Stress and distress emerged in the office space sector, as post-pandemic work-from-home trends have altered the demand for office space, resulting in climbing vacancy rates. This has dislocated the sector and initiated a… Read more »

Market Perspectives

Jared Fuller Discusses Mission Aligned Investing Live on Nasdaq

Prime Buchholz Principal and Co-Head of Research Jared Fuller recently sat down with Adriana Ballard, Director of Nasdaq Asset Owner Solutions, to discuss how mission investors are aligning their portfolios with their unique goals. See the full video here.

Market Perspectives

Investment Perspective: Where is Monetary Policy Going?

Introduction In March 2022, the Federal Reserve embarked on what was to become the fastest tightening cycle in a generation, increasing the federal funds rate (FFR) from 0.125% to 4.625% over a span of 12 months. Fed guidance calls for a terminal FFR of 5.125%—roughly two more 25 bps rate hikes. However, when new projections… Read more »

Market Perspectives

Investment Perspective: The Russian Invasion – One Year Later

Introduction One year ago, Russian armies crossed the Ukraine border, beginning an onslaught of destruction, bloodshed, and displacement. The world largely rallied to Ukraine’s side, providing funding, military weapons/equipment, and supplies, while imposing an unprecedented level of multilateral economic sanctions against Russia. However, the toll the conflict has taken on Ukraine and, more broadly, Europe,… Read more »

Market Perspectives

Emerging Markets Health Check

Emerging markets (“EM”) are often thought to be vulnerable to tightening cycles in the developed world. This belief is not without merit, as evidenced by the “Taper Tantrum” of 2013. At first glance, it would appear that this viewpoint is warranted, based on the performance of EM during the latest market downturn. EM equities have fallen since the Fed began raising rates earlier in 2022. Additionally, EM headlines in recent months have focused on the rising number of countries in the developing world approaching default and the roughly quarter of a trillion dollars in distressed EM debt. Headlines, however, can be deceiving.

Market Perspectives

Examining the Anti-ESG Movement

Introduction Since the term was coined in 2004, the ESG movement—the consideration of environmental, social, and governance factors in the investment process—has overcome numerous challenges to gain traction amongst investors. But just as the movement has taken hold and become part of common investment vernacular, ESG investing now faces a new challenge: the political arena…. Read more »

Market Perspectives

SEC Unveils Historic Climate Change Rule

The U.S. Securities and Exchange Commission (SEC) recently unveiled a proposed rule that would require all public companies to disclose a host of climate-related information as part of their annual filings, including details on their greenhouse gas emissions. The SEC is currently accepting public comment on the proposal and expects to finalize the rule later this year. In this report, we provide an overview of the proposed rule, summarize the potential impact, and—in the spirit of Earth Day—outline how clients can share feedback with the SEC.

Market Perspectives

Markets React to Russia’s Invasion of Ukraine

We stand with the countless world leaders who have expressed outrage and condemned the attacks. We hope for a swift, peaceful conclusion that results in no further loss of life or liberty for the Ukrainian people. While markets have been reacting to escalating tensions in the region for a number of months, they responded sharply this week as the worst fears became realized.

Market Perspectives

Markets Fluctuate as the Fed Pivots

Volatility Rings in the New Year It was a tumultuous first month of the year, as rising inflation and a shift in the Fed’s monetary policy stance caused extreme volatility across most markets. In the wake of strong market performance to end 2021—predominantly attributable to the strength of mega cap stocks—losses within equities have been… Read more »

Market Perspectives

Prime Buchholz ESG & DEI Surveys: Understanding Integration Across Recommended Managers

Since one of our first clients sought to stand against Apartheid and divest from South Africa in 1988, Prime Buchholz has been helping clients reflect their missions and values through their investment portfolios. With a client base rooted in philanthropy, we have witnessed interest in mission-aligned investing build exponentially, particularly in the last decade.

Market Perspectives

The Inflation Debate Continues

Inflation has been a topic of much speculation since the outset of the COVID-19 pandemic. In our April Investment Perspective, The Inflation Debate, we explored some of the factors behind rising inflation expectations, including the historic level of stimulus that has been infused into the system worldwide. In the following report, we examine some of… Read more »

Market Perspectives

9/11: 20 Years Later, We Honor Those Lost by Coming Together in an Effort for a Better Tomorrow

Every now and then, we as a people experience an event so momentous, so jarring, that the cacophony of life suddenly goes silent. Our priorities become crystal clear, and competing interests seem to fall away. We remember what we’ve always known: Life is better when we come together. It is through this lens that we… Read more »

Market Perspectives

The Biden Tax Plan: Key Takeaways for Today’s Investors

Introduction In his first 100 days in office, President Biden has proposed more than $6 trillion in federal spending. This includes the recently passed $1.9 trillion COVID-19 relief package, a $2.3 trillion infrastructure spending plan, and $1.8 trillion for the American Family Plan targeting family and education programs. The Biden administration has proposed a series… Read more »

Market Perspectives

The Inflation Debate

Introduction With travel restricted and economies closing, inflation expectations dropped precipitously at the outset of the COVID-19 crisis. However, massive stimulus efforts and the reopening of economies in recent months has caused inflation expectations to rise. The chart below shows inflation expectations derived from the U.S. Treasury Inflation Protected Securities real yield information for the… Read more »

Market Perspectives

The Acceleration of the Clean Energy Revolution

When the Great Financial Crisis shook the markets in 2008, it sent the energy sector into freefall and brought the positive momentum of the burgeoning renewable energy industry to a screeching halt. In contrast, the COVID-19 crisis appears to have accelerated the shift toward renewable sources of energy. As the world went into lockdown in… Read more »

Market Perspectives

Reddit vs. the Hedge Funds: Anatomy of a Squeeze

The start of 2021 marked a sharp increase in speculative trading. Video game retailer GameStop has been the poster child for this mania, gaining over 1,700% from year-end through January 27th, before falling sharply on January 28th—fueled by Reddit’s r/WallStreetBets community. Year-to-date (YTD) through January 27th, the Goldman Sachs “Highest Short Interest” basket gained 52.1%. … Read more »

Market Perspectives

2020 Year-End Review

The year 2020 will be remembered as one of the most challenging in human history. Before we begin our review of the financial markets, we need to acknowledge the previously unimaginable impact of the virus. COVID-19 has infected more than 88 million people in 191 countries, which has led to the deaths of nearly 2… Read more »

Market Perspectives

Chaotic Start to the New Year

The start of a new year is always exciting; full of wonder and new beginnings. That is, of course, unless the first few days feel like a continuation of the previous year… and the previous year was 2020. In the midst of record rates of COVID-19 infections and deaths, the first week of 2021 was… Read more »

Market Perspectives

NASDAQ: A Historical Perspective

The NASDAQ 100 Index reached all-time highs this week. While the Index briefly entered a bear market in March, it regained its losses by early June and continued its upward climb. Year-to-date through July 31, 2020, the NASDAQ outpaced the S&P 500 by roughly 2,300 bps, helping propel the NASDAQ’s strong performance over the past… Read more »

Market Perspectives

The Diversity Dynamic

Introduction Even as we have witnessed momentum among our clients to identify and invest with diverse managers, the asset management industry has been slow to address a history of gender and racial homogeneity. Recent events have put a spotlight on a number of industries where the immense benefits of a diversity of perspective and experience… Read more »

Market Perspectives

Markets Post Sharp Rally Off Pandemic Lows

Over the past two-plus months, equity markets have rallied sharply, with vast stimulus and optimism surrounding the reopening of the economy as the main drivers. This rebound in equity prices has coincided with ongoing concerns about the health of the global economy. On June 8th, the S&P 500―at least temporarily―returned to positive territory for calendar… Read more »

Market Perspectives

Climate Change and the Institutional Investor

Awareness of sustainable investing among institutional investors and their constituents has steadily increased over the last decade. However, recent events have intensified conversations among investment committees, staff, donors, trustees, and other stakeholders. Climate-related headlines, the mobilization of climate activists and environmentalists, and weakness in traditional energy markets drive much of the noise around the topic…. Read more »

Market Perspectives

Fiscal and Monetary Policy Align as Stimulus Sparks Markets

March 27, 2020 Market activity from Tuesday to Thursday this week, represented the strongest three-day U.S. equity rally since 1931. Also, there were some signs of improved liquidity in the fixed income markets. Optimism rose after the Senate passed a massive spending program designed to combat the devastating economic impact of the coronavirus. With this… Read more »

Market Perspectives

Money Market Funds: Kings and Paupers

March 24, 2020 When market dislocations occur, the notion that “cash is king” is a popular saying by market participants. Unfortunately, how that cash is invested dictates whether cash is a king or a pauper. Prime money market funds (MMFs) invest in a wide array of securities such as commercial paper issued by corporations, bank… Read more »

Market Perspectives

Market Volatility Hits Record Highs

In recent days, equity markets volatility has remained heightened. The market’s “fear gauge,” the VIX, closed at 82.7 on Monday―the highest close in its 30-year history. Daily moves in the S&P 500 have averaged 7.4% over the past eight trading sessions and Monday’s 12.0% decline was the worst day for the Index since Black Monday… Read more »

Market Perspectives

Investment Perspective: In the Face of Market Volatility, Follow Your Plan

The minute-by-minute evolution of information regarding COVID-19 (“coronavirus”) has created extreme volatility in equity markets. The VIX, widely considered the market’s “fear gauge,” oscillated between 45 and 55 for much of the week before spiking to an intra-day high of 76.8 on Thursday. At the peak of the credit crisis, the VIX reached a high… Read more »

Market Perspectives

Investment Perspective: As Coronavirus Spreads, Wash Your Hands and Prepare for More Volatility

Weakness during the latter weeks of February continued into the first week of March. Fears over COVID-19 (also known as coronavirus) continued to rise as more cases were reported globally. Investors, faced with a high level of uncertainty, sought safety. This continued to have a profound impact on capital markets, which saw a selloff in… Read more »

Market Perspectives

Investment Perspective: Markets React to Coronavirus Outbreak

As the coronavirus outbreak continued to spread far beyond Chinese borders this week, financial markets reacted in kind, with frightened investors repricing global growth expectations and exiting positions, causing stocks to plummet. With the first confirmed case of coronavirus reported in South America on February 26th, the coronavirus outbreak had spread to six of the… Read more »

Market Perspectives

2018 Year-End Review

Capital markets experienced heightened volatility toward the end of 2018 as investor sentiment shifted. Concerns over global growth, ongoing trade wars, higher U.S. interest rates, and corporate profit trends resulted in a sharp sell-off of many risk assets as the fourth quarter unfolded. U.S. equities posted gains for most of the year, with the Russell… Read more »

Market Perspectives

November 2018 Monthly Market Review

November markets generally rallied, despite global trade tension and growth worries remaining prominent concerns. Longer-term yields declined, which boosted performance for U.S. Treasuries, income-generating equities, and select areas of REITs. Global equity markets rose, and although volatility fluctuated during the month, it never reached the peaks seen in October. While the U.S. dollar (USD) rose… Read more »

Market Perspectives

October 2018 Monthly Market Review

Rising U.S. interest rates, ongoing global trade tension, and country-specific geopolitical issues contributed to a sharp shift in investor sentiment during October. Global equity markets sold off sharply while volatility grew considerably. Weakness was widespread and many equity markets hit correction territory. Equity volatility rose sharply since the prior month-end. In a reversal of recent… Read more »

Market Perspectives

September 2018 Monthly Market Review

U.S. equities continued to set records in September, despite rising interest rates and ongoing uncertainty regarding global trade policy. Emerging markets (EM) equity fell sharply at the beginning of the month on concerns about these themes; they rallied in the second half of the month. Despite a poor start, the Brazilian real, Russian ruble, and… Read more »

Market Perspectives

August 2018 Monthly Market Review

U.S. equity markets continued their run of solid performance in August amid the tailwind of strong second quarter earnings reports. However, there was significant dispersion across capital markets, with geopolitical risks, macroeconomic volatility, and a flight to quality driving the U.S. dollar (USD) higher and most non-U.S equity markets lower. There were some concerns regarding… Read more »

Market Perspectives

July 2018 Monthly Market Review

Economic indicators showed signs of continued improvement in the U.S. After rising sharply in the second quarter, the Dollar Spot Index retreated modestly as the U.S. dollar fell against most currencies. The U.K pound and the Japanese yen were two notable exceptions. U.S. Treasury yields continued to move higher on the back of improving economic… Read more »

Market Perspectives

June 2018 Monthly Market Review

Trade war rhetoric continued to escalate during June and had a meaningful impact on financial markets. Oil prices surged—hitting a three-and-a-half-year high late in the month. The Federal Reserve elected to increase policy rates yet again, and signaled the likelihood of four total hikes in 2018. These factors contributed to movement in the currency markets,… Read more »

Market Perspectives

May 2018 Monthly Market Review

U.S. equities posted positive returns in May. However, equity results were mixed across the globe following the rise of several geopolitical risks. These include a fiery presidential campaign in Mexico, fears that Turkey may lessen central bank independence, and heightened concerns of growing populist pressures in Europe. Trade policy initiatives once again spurred uncertainty. The… Read more »

Market Perspectives

April 2018 Monthly Market Review

The decline in risk assets subsided in April and U.S. equity market volatility fell from elevated levels exhibited in recent months. Earnings reports in the U.S. were generally positive, with more than 80% of companies in the S&P 500 exceeding expectations thus far in the first quarter reporting cycle, which Bloomberg reported as an all-time… Read more »

Market Perspectives

March 2018 Monthly Market Review

Most equity markets fell in March and volatility remained elevated. Information technology (IT) stocks declined sharply, but remained the top performing sector in the S&P 500 on a year-to-date basis. Unlike February, dispersion was high as some sectors posted positive results amid the broad equity market sell-off. Longer-term U.S. interest rates fell, reversing some of… Read more »

Market Perspectives

February 2018 Monthly Market Review

Despite a favorable macroeconomic backdrop, global equity markets experienced a sharp pullback in early February and equity market volatility rose sharply. After several years at muted levels, domestic equity volatility, as measured by the VIX, hit its highest level since August 2015 as leverage was being forced out of the market and risk aversion was… Read more »

Market Perspectives

January 2018 Monthly Market Review

Risk assets started 2018 strong with global equities building on gains from 2017. Investors embraced the enactment of U.S. tax reform and optimism rose regarding improving economic activity in Europe and a generally favorable backdrop for global growth. In this environment, merger and acquisition activity was robust to start the year despite high valuations. For… Read more »

Market Perspectives

November 2017 Monthly Market Review

Weakness in the U.S. dollar (USD) during November provided a tailwind for global equity markets, which built upon gains achieved in October. However, there was notable dispersion among local equity market returns, with strong gains in the U.S. and several Asian markets but declines across the U.K and Europe. Despite broad equity market gains, November… Read more »

Market Perspectives

October 2017 Monthly Market Review

Equity market gains were broad-based in October, driven by rising optimism regarding tax stimulus and recent favorable corporate earnings trends. Technology was a positive contributor across regional equity indices on the heels of further gains from several mega cap stocks. The U.S. dollar rallied, but local equity market strength outweighed the currency headwind in most… Read more »

Market Perspectives

September 2017 Monthly Market Review

Most risk assets performed well in September, with the markets embracing potential domestic tax reforms and economic releases reflecting mostly positive indicators toward the end of the month. The Federal Reserve also announced plans to taper bond purchases, indicating confidence in the economic recovery. Small cap stocks outperformed their larger counterparts by a wide margin… Read more »

Market Perspectives

August 2017 Monthly Market Review

While most equity markets enjoyed another positive month in August, these gains masked greater uncertainty and increased geopolitical tensions. In the last week of the month, North Korea fired several ballistic missiles into the East Sea and over Japan, which sparked a rally in interest rates and precious metals as investors sought safe-haven assets. While… Read more »

Market Perspectives

July 2017 Monthly Market Review

July was another strong month for risk assets amid ample central bank liquidity, stable economic growth, and strong U.S. corporate earnings results. The environment not only supported global equities, but several marketable real asset categories and below-investment-grade credit as well. Domestically, equity markets continued to exhibit low volatility and the VIX hit a multi-decade low… Read more »

Market Perspectives

June 2017 Monthly Market Review

June marked another positive month for equity markets, with emerging markets (EM) outperforming their developed market counterparts. U.S. equities improved slightly for the month after a strong start to the year, but the MSCI EAFE Index fell modestly despite currency serving as a tailwind in aggregate. The decline in U.K. equities fueled weakness as the… Read more »

Market Perspectives

May 2017 Monthly Market Review

Global equity markets continued to gain ground in May, led by non-U.S. developed- and emerging-market equities. Political corruption generated headlines once again in Brazil, but contagion was limited and the broader market impact was muted. Political uncertainty was also high domestically given news of ongoing investigations into alleged communications with Russia by members of the… Read more »

Market Perspectives

April 2017 Monthly Market Review

Global equity markets continued to rally and exhibit low volatility in April despite an uncertain political environment and a lackluster U.S. GDP report. While there were gains in several areas, there were further signs of market divergence across markets during the month. Emerging markets and non-U.S. developed market equity outperformed the S&P 500 Index, widening… Read more »

Market Perspectives

March 2017 Monthly Market Review

Returns diverged across markets during March. U.S. equities were relatively flat, but some asset classes posted strong gains and others declined modestly. The U.S. dollar (USD) fell relative to most foreign currencies. This provided a tailwind for non-U.S. investments, particularly those within emerging markets (EM). During the month, several domestic economic indicators exhibited positive trends… Read more »

Market Perspectives

February 2017 Monthly Market Review

February marked another positive month for most risk assets, with several domestic equity indices hitting record levels once again. Investor sentiment continued to be positive as monetary policies among large central banks remained relatively accommodative and U.S. economic indicators were largely positive. Amid strong results, there was dispersion among capital market returns as natural resource… Read more »

Market Perspectives

January 2017 Monthly Market Review

The market continues to assess the potential impact of President Donald Trump’s policy initiatives. A few key trends from late 2016 reversed during January, broadly impacting the capital markets. After rising post-election, the U.S. dollar (USD) fell relative to many foreign currencies, providing a tailwind for U.S. investors’ allocations abroad. U.S. Treasury yields stabilized as… Read more »

Market Perspectives

November 2016 Monthly Market Review

Donald Trump’s unexpected victory in the U.S. Presidential election had a significant, immediate, and broad impact across the capital markets. It is unclear precisely how policies will change under Trump’s leadership and whether he will be able to fully implement the plans he discussed during the campaign. However, at this stage, the market appears to… Read more »

Market Perspectives

October 2016 Monthly Market Review

Risk asset performance was mixed in October, after largely exhibiting gains in September. Outside of positive returns in financials, U.S. equities were broadly lower, led by meaningful weakness in health care and real estate. U.S. equities underperformed their international counterparts which produced positive local returns. However, currency was a significant headwind as the U.S. dollar… Read more »

Market Perspectives

September 2016 Monthly Market Review

Most risk assets posted positive absolute returns in September, as large central banks remained accommodative and the Fed continued to hold policy rates steady. After an extensive review, the Bank of Japan (BoJ) announced a new monetary policy initiative targeting a 0% ten-year sovereign yield. To achieve this yield target, the bank will continue to… Read more »

Market Perspectives

August 2016 Monthly Market Review

Markets were mixed in August and performance between risk assets was diverse. Unlike several recent meetings, the Federal Reserve’s annual symposium at Jackson Hole on August 25th contained a more hawkish tone, putting upward pressure on U.S. Treasury yields. Despite a growing view that the Fed put a September rate hike into play, the impact… Read more »

Market Perspectives

July 2016 Monthly Market Review

July was a strong month for equity markets as investors looked past the potential negative impacts of Brexit and equity market volatility abated to more normal levels. In Japan, officials implemented further fiscal and monetary policy expansion, while it appeared the markets expect further initiatives in the United Kingdom. Emerging markets (EM) and non-U.S. developed… Read more »