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July 3rd, 2017

Covenant Weekly Market Synopsis as of June 30, 2017

Friday marked the end of Q2 and the first half of the year is now officially in the books. It was a strong start. At the midway point, global equities are up +11.8% and the S&P 500 gained +9.3%, with Q2 representing its seventh consecutive positive quarter. Emerging Market equities rallied +18.9%, while their less […]

June 26th, 2017

Covenant Weekly Market Synopsis as of June 23, 2017

EQUITY VOL IS DEAD!!! I, of course, don’t believe this to be the case and, like most of you, recognize that this period of equity market quiescence will end.  Yet, admittedly, it sure feels like volatility is dead, especially recently. Over the last 20 years, the VIX Volatility Index has ended the day below 10 […]

June 19th, 2017

Covenant Weekly Market Synopsis as of June 16, 2017

Continued weak economic data, including waning inflation and slower growth in housing, had little impact on the broader domestic equity indices last week. Although the Nasdaq (-0.9%) continued to nurse a hangover from the prior week’s “tech wreck”, the S&P 500 managed to move higher by 0.1% and the Dow Jones Industrial Average rose 0.5% […]

June 12th, 2017

Covenant’s Weekly Market Synopsis as of June 9, 2017

Another week of potential market moving events (more terrorism in the UK, the British election and former FBI director Comey’s congressional testimony) had little impact on equities, which treaded water for much of the week. Yet, a routine research piece released Friday by Goldman Sachs evidently found the sensitive spot in investors’ psyche catalyzing a […]

May 30th, 2017

Covenant Weekly Market Synopsis as of May 26, 2017

Equity markets remained resilient in a week of potentially negative market-moving headlines: a terrorist bombing in the UK, a downgrade of China’s credit rating, and a Federal Reserve announcement for plans to begin reducing its balance sheet later this year. Domestic stock indices such as the S&P 500 and Nasdaq ended the week at record […]

May 22nd, 2017

Covenant Weekly Market Synopsis as of May 19, 2017

Last week a branch snapped in the forest… waking the hibernating volatility bear. Jumping to all fours, teeth bared, ready to attack. The groggy bear surveyed the landscape, listening intently while sniffing the air for even the slightest scent of trouble. Carefully camouflaged under promises of tax reform, deregulation and fiscal stimulus the volatility bear […]

May 15th, 2017

Covenant Weekly Market Synopsis as of May 11, 2017

Thus far in May, domestic equity indices have been consolidating with the DJIA, S&P 500 and Nasdaq hovering near record highs. Developed international stocks have fared better for the month and the year – as have emerging and frontier market equity indices. Corporate earnings per share for the first quarter in the U.S. are showing […]

May 1st, 2017

Covenant Weekly Market Synopsis as of April 28, 2017

April was a short, two-act play in which our favorite protagonist, equities, ultimately moved higher. In the first act, geopolitical tensions (e.g. North Korea/China and Syria/Russia), weaker economic data and the French Election generated a modest sell-off in risk assets. In the second act, improved corporate earnings and anticipation of tax reform overcame still weaker […]

April 24th, 2017

Covenant Weekly Market Synopsis as of April 21, 2017

Equity markets were a tad schizophrenic last week, though not overly so. There were some decent intraday reversals, but ultimately strong performance on Monday and Thursday led to a weekly gain of nearly 1% in the S&P 500. Small Capitalization stocks (i.e. Russell 2000) and the tech-heavy Nasdaq Index performed even better, generating gains of […]

April 17th, 2017

Covenant Weekly Market Synopsis as of April 14, 2017

Even with growing uncertainty about the new administration’s policy priorities, geopolitical risks (North Korea and China, Syria and Russia) are beginning to steal the headlines. These risks, along with relatively weak domestic economic data releases last week, helped create a bid for defensive assets and selling pressure on risk assets. Domestic equities declined for the […]