CIO Insights

Rain Down On Me

Indisputably, the weather affects mood, and the mood amongst investors in April was gloomy and downbeat. Equities endured a tough start of quarter, with the S&P500 posting both its first monthly decline of 2024 and its first 5% pullback in 6 months. 

Serenity Dow

Coming off a robust quarter to conclude 2023, US equities rode the momentum to a series of new all-time highs in Q1, delivering the strongest start to a year since 2019. 

Nvidia Games

The rally rolls on. Hard. Statistically, February is a challenging month, but this go ‘round the bulls defied the odds to end squarely in the green.

New Year Energy

After a strong rally to conclude 2023, the new year rang in with a more cautious tone as small caps slid and large caps led. Stocks have now rallied for the third straight month, marking the longest streak since August 2021

A Tale of Two Years: ’23 In Review and ’24 In Prediction

Following a tumultuous and disappointing 2022, we faced a fork in the road in terms of what would lie ahead in 2023: a recovery and rally to claw back some or all the previous year’s losses or a continuation of the pain and tough times.

No Vember, No Problems

We don’t always know what the markets want, but we do know that the more easing they come across, the less problems they see. 

Bad Months Come In Threes

Stocks and bonds mutually declined for a third consecutive month, continuing on the zigzag, downward path that they each have been travelling since mid-July. After five months of spring and summer gains, both the S&P500 and NASDAQ have now dropped more than 10% from their highs, an ignominious achievement that lands both indices squarely in correction territory.

It's The Time Of The Season

Seasonal weakness. The September Effect. These terms are often used in connection with late summer, during which we historically have experienced the worst-performing months of the calendar (over the last 50 years or so). Just like the weather, market performance has its own “seasons” which are sometimes predictable and repeatable, and September is the only month in the year with a negative average return. This year was no different. 

Winning Streak Status: Snapped

All good things must eventually come to an end. In August, equity markets snapped five-month winnings streaks to post their first monthly drops since mid-winter. 

Pieces of the Pie: Asset Allocation 101

Asset allocation. An idiom as conventional to the investment management industry as “block and tackle” is to sports and “keep it simple” is to management consulting. And for good reason. Nearly always, asset allocation is the first crucial step taken in the portfolio construction process. As a result, its importance is broadly accepted and agreed upon – serving as the cornerstone of portfolio construction while simultaneously being the key determinant of overall risk and return. Important stuff, indeed.