Commentary Archives | Page 6 of 21

Commodities and Precious Metals Update (Week ending January 31, 2020)

The coronavirus and its possible deleterious effect on the global economy ruled the markets last week, pushing global stock markets and bond yields lower. Weaker-than-expected durable goods orders, new home sales and an as-expected GDP report combined with the FOMC leaving U.S. interest rates unchanged but expressing concerns about the coronavirus and the low level of inflation also helped to push U.S. stock markets and bond yields lower. At week’s end the S&P 500 fell 2.1% closing at 3225.52, the 10-year U.S Treasury rate fell 17bps to 1.51% and the U.S. dollar weakened 0.5% (as measured by the DXY Index).

Commodities and Precious Metals Update (Week ending January 24, 2020)

U.S. stock markets were mostly unchanged through Thursday last week despite building concerns surrounding the coronavirus, more negative news regarding Boeing and the 737 MAX. 10-year U.S Treasury rates, in contrast, fell 9bps through Thursday moving lower as investor concerns over the coronavirus increased. On Friday, U.S. stock markets capitulated to coronavirus concerns after a second case was reported in the U.S., with the S&P 500 Index decreasing just under 1% and with the 10-year U.S Treasury rate falling another 5bps. At week’s end the S&P 500 lost a little over 1% closing at 3295.45, 10-year U.S Treasury rate dropped 14bps to 1.68% and the U.S. dollar strengthened 0.3% (as measured by the DXY Index).

Climate and Avocado Prices: Chart of the Week

Climate intersects with investing on many levels- look no further than to agricultural commodities. Examining seasonal avocado prices is just one example of how changes in climate may be increasingly interconnected with investing: a confluence of science, economics and ethics.

Commodities and Precious Metals Update (Week ending January 17, 2020)

Stronger-than-expected U.S. economic reports (retail sales, housing starts and jobless claims), moderate inflation and good earning releases drove the S&P 500 to another record high. In addition the official signing of the U.S.-China Phase One trade agreement and the removal of the designation of China as a currency manipulator along with a stronger-than-expected Chinese industrial production report, helped move U.S and global stock markets higher while strengthening the U.S. dollar. At week’s end the S&P 500 Index increased 1.6% to 3329.62, the 10-year U.S. Treasury rate was unchanged at 1.82% and the U.S. dollar (as measured by the DXY index) strengthened 0.3%.

A Decade of Stock Returns: Chart of the Week

Stock market returns come in all shapes and size—how exactly does 2019’s 30% gain measure up? Breaking down a decade of S&P 500 stocks illustrates how lumpy equity returns can be, and the folly to simply trying pick winners. Just as important as the actual returns is how they are distributed, and this chart serves as a powerful visualization of how the risks we take are always changing.

Commodities and Precious Metals Update (Week ending January 10, 2020)

Though markets started the week with heightened concerns regarding possible Iran retailiatory actions against a U.S. airstrike killing IRGC general Soleimani, U.S. stock markets, 10-year U.S. Treasury rates and the U.S. dollar moved slightly higher through Tuesday. Overnight reports on Tuesday of Iranian missile attacks on U.S. bases in Iraq drove U.S. and global stock markets significantly lower before U.S. stock markets opened on Wednesday. President Trump’s speech before the nation late Wednesday morning defused tensions surrounding the U.S. and Iran and U.S. stock markets moved higher yet again through Thursday. Friday’s good-but-slightly-weaker-than-expected payroll report pushed U.S. stock markets off their highs and pushed the 10-year Treasury rate and the U.S. dollar slightly lower as well. At week’s end the S&P 500 Index increased 1.2% to 3265.35, the 10-year U.S. Treasury rate increased 3bp to 1.82% and the U.S. dollar (as measured by the DXY index) strengthened 0.5%.