Covenant Weekly Market Synopsis 1.13.17

January 13, 2017

The Trump reflation trade lost some steam last week (and more this morning), although it is worth noting that broad equity indices in the U.S. and internationally have already posted gains of around 2% or better thus far in 2017. The yield on US Treasuries declined a titch, in a continuation of the moderating yield […]

Covenant Weekly Market Synopsis as of January 6, 2017

January 9, 2017

Risk assets got off to a good start in the first week of trading. Domestic, international and emerging market stocks all moved higher by around 2%, shaking off some of the softness witnessed in the final week of 2016. The yields on US Treasury bonds were volatile (expect a lot of that this year), but […]

Covenant Weekly Market Synopsis as of December 30, 2016

January 2, 2017

Like most years, 2017 is starting with an optimistic tone…. and why not?  Uncertainty regarding the presidential election has been replaced with anticipation of a more business-friendly administration characterized by lower taxes and less regulation.  In response, the S&P 500 rocketed 7.9% post-election to finish the year the year up 12.0% (including dividends).  Small capitalization […]

Covenant Weekly Market Synopsis as of December 16, 2016

December 19, 2016

  The Fed threw a little sand in the gears of the post-election stock market rally last week. Although the 0.25% rate hike announced following their final meeting of the year was fully priced into the market, the Fed struck a modestly more hawkish tone that included an increase in their forecast for the number […]

Covenant Weekly Market Synopsis as of December 9, 2016

December 11, 2016

Another week, another record. Equity markets continued to push higher around the world on hope and faith in the future Trump administration’s economic policies. Those positive vibes were buttressed by firmer domestic economic data and an accommodative message from European Central Bank President Mario Draghi last week. The Dow Jones Industrial Average, although representing only […]

Covenant Weekly Market Synopsis as of December 2, 2016

December 4, 2016

Following two weeks of relentless buying, risk assets slowed their flow last week. Domestic stocks declined by approximately 1% while developed international bourses fell by 0.2%. Emerging market equities, which suffered post-election, continued to slide, albeit modestly by 0.3%. Interest rates ended the week relatively unchanged, after rising sharply in the month of November (the […]

Covenant Weekly Market Synopsis as of November 25, 2016

November 27, 2016

An abridged version this week due to the holiday and family time… Traders were undeterred by the Thanksgiving-shortened week, pushing equity markets higher. Indeed, major domestic indices tacked on gains of 1.5% or more for the week with the S&P 500, Dow Jones Industrial Average, Nasdaq, and Russell 2000 all reaching record levels. International equities […]

Covenant Weekly Market Synopsis as of November 18, 2016

November 21, 2016

Developed market equities continued to move higher last week following the election. The move was more pronounced in the U.S., ground-zero for President-elect Trump’s new policies, where large capitalization stocks moved higher by about 1%. Small capitalization stocks (which are expected to benefit from reduced regulation and a lower corporate tax rate under the new […]

Covenant Weekly Market Synopsis as of November 11, 2016

November 14, 2016

Wow… what a week. Risk assets began the week moving higher as most polls and pundits agreed that Clinton would win the election and there would be AT LEAST four more years of status quo government. Then the script flipped and equities galloped higher when Trump prevailed and it became clear that there would NOT […]

Covenant Weekly Market Synopsis as of November 4, 2016

November 7, 2016

It was a tough week all over for financial assets, save long volatility products as the VIX Index (sometimes referred to as the “fear gauge”) jumped 39%. Reflecting fear or, more likely, uncertainty about the upcoming presidential election, equity markets the world over declined between 2% and 3% for the week. Investors shifted from risky […]