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 […]

Covenant Weekly Market Synopsis as of October 28, 2016

October 31, 2016

What a strange day Friday turned out to be.  For economic geeks, the FBI’s announcement about reopening its probe into Hillary Clinton’s emails was only the second biggest surprise.  The bigger revelation was that the economy expanded at an estimated 2.9% annualized rate in Q3, far above recent growth estimates and the best quarterly growth […]

Covenant Weekly Market Synopsis as of October 21, 2016

October 24, 2016

After two consecutive weeks of losses stocks staged a mini recovery, though with the exception of Japan and emerging markets, most indices are down about 1% month-to-date. Interest rates also reversed their recent trend as yields fell modestly; the yields on the UST 10-year and 30-year bonds are now 1.73% and 2.49%, respectively. While low […]

Covenant Weekly Market Synopsis as of October 14, 2016

October 17, 2016

Following an up and down week, equity markets (for the most part) closed in the red adding to losses from the previous week. Overall, it has been a tepid transition to the fourth quarter. Domestically, the immediate concern seemed to be potentially weak earnings as Alcoa kicked off the Q3 earnings season missing on profits […]

Covenant Weekly Market Synopsis as of September 30, 2016

October 3, 2016

Equity market performance last week was mixed as international stocks generally finished lower, while domestic stocks moved modestly higher (albeit with some volatility as the S&P 500 finished higher or lower by 0.75% from where it started each day). For the month of September, large cap domestic stock performance was basically flat, while international stocks […]

Covenant Weekly Market Synopsis as of September 23, 2016

September 26, 2016

Buy, buy, buy… a lot of investors were pushing the buy button last week as risk assets, safe haven assets and inflation-sensitive assets (precious metals and commodities) all increased in price. Perhaps it was the generally supportive message from central bankers…. Whatever the reason, investors were ebullient last week. Global equities rose better than 2%, […]

Covenant Weekly Market Synopsis as of September 16, 2016

September 19, 2016

Following a rough end to the previous week (when equity markets declined by more than 2% on Friday, Sep 9th) risk assets staged a strong recovery on Monday, but ended the week mixed. Domestic equities rose by 0.6%, while developed international markets declined by 1.8% and emerging markets fell 2.6%. Month-to-date, broad equity indices are […]

Covenant Weekly Market Synopsis as of September 9, 2016

September 12, 2016

“Is this the big one?” The question was asked around trading desks, office water coolers, and at dinner tables on Friday evening as equity markets woke from their protracted slumber (the S&P 500 had not moved 1% in either direction for 44 consecutive days), got out of bed and tripped on the dog, cat or […]

Covenant Weekly Synopsis as of September 2, 2016

September 5, 2016

Last week included the end of August, so a quick rundown of asset class performance for the month: Equities (including dividends): S&P 500 (+0.1%), NASDAQ (+1.2%), Global Equities (+0.4%), Europe (+0.6%), Emerging Markets (+2.5%) Fixed Income (yield change): UST-2 Year (+0.15%), UST-10 Year (+0.13%), UST-30 Year (+0.05%). Note the yield on the short duration instruments […]