Covenant Weekly Market Synopsis as of August 26, 2016

August 29, 2016

On the surface it was a relatively calm weak for equity markets, albeit with a negative bias, as most bourses recorded modest declines. Friday provided some fleeting excitement for equity bulls as markets reacted positively to Fed Chairman Janet Yellen’s speech at the Jackson Hole monetary policy symposium. However, immediately following her speech Vice Chairman […]

Covenant Weekly Market Synopsis as of August 19, 2016

August 22, 2016

It was a fairly quiet week in the markets. The S&P 500 pushed modestly upward on Monday (+0.3%) to a new high, but finished the week up only 0.1%. Stocks on the international stage were mixed with European and Japanese equities falling just under 2%, while Emerging and Frontier Markets edged higher by about 0.1%. Interest […]

Covenant Weekly Market Synopsis as of August 12, 2016

August 15, 2016

Unlike action in the Olympiad last week, international outperformed Team USA by 1% or more (in equity land). Domestic stocks did close the week in the black, but only by the slimmest of margins. US Treasury yields grinded lower, with the 10-year yield declining from 1.59% to 1.51% for the week, but well within the […]

Covenant Weekly Market Synopsis as of August 5, 2016

August 8, 2016

In a rather mixed week that saw crude oil briefly enter a technical bear market (decline of 20% from a recent high), global stocks were decidedly mixed. Equities began the week in the red, but started to recover after the Bank of England announced a massive stimulus program and then rallied hard on Friday following […]

Covenant Weekly Market Synopsis: July 22, 2016

July 22, 2016

Given the attempted coup in Turkey last Friday (7/15) evening, risk assets were looking vulnerable going into the weekend. However, the coup was quickly quelled and by Monday risk assets were back in rally mode.  Equities did not move up in a straight line, as there was some intraweek volatility, but ultimately global equities ratcheted […]

Covenant Weekly Market Synopsis as of July 15, 2016

July 18, 2016

In yet another week marred by terrorist atrocities, equity markets recorded strong gains with the S&P 500 hitting a new high. While domestic stocks set records, it was international stocks that shined brightest with Japan leading the way gaining 5% on hopetations (hope + expectations) that the BOJ will inject more stimulus into the flagging […]

Covenant Weekly Market Synopsis as of July 8, 2016

July 11, 2016

Domestic equities recorded gains last week approaching new highs, even as the yields on US Treasuries (USTs) plumbed new lows. Outside of the U.S. however, the picture was less rosy as the effects of Brexit rippled through equity markets: Europe (-1.5%), Japan (-4.2%), Emerging Markets (-1.2%), and Frontier Markets (-0.4%). Precious metals continued to receive […]

Covenant Weekly Market Synopsis as of June 24, 2016

June 26, 2016

The UK’s referendum to exit the European Union (aka “Brexit”) shocked the world – full stop. As it became clear that the referendum would pass late Thursday evening, financial markets began to convulse, primarily because most investors were positioned for it to fail (more on this below in the “Ocean’s 11” section). Taking a step […]

Covenant Weekly Market Synopsis as of June 17, 2016

June 20, 2016

Worried, scared, flummoxed…  Any or all of these adjectives could be used to describe investor psyche last week as Britain’s referendum and the FOMC’s reduced rate guidance engendered a variety of negative emotions.  It wasn’t a terrible week for risk assets in terms of magnitude, but with the S&P declining on 4 out of 5 […]

Covenant Weekly Market Synopsis as of June 10, 2016

June 12, 2016

What began as a promising week for risk assets, ended up rather mixed with most developed market equity indices declining while emerging and frontier markets rose in spite of a stronger US dollar. In fact, this chart of the MSCI All Country World Index gives visual meaning to the term “Hump Day” as equity markets […]