Covenant Weekly Synopsis as of December 11, 2015

December 14, 2015

Equity markets suffered their worst weekly decline since the August correction as prices of key commodities (metals and fuels) fell to new cyclical lows. Developed market equities slumped between 2% and 4%, while emerging market stocks declined nearly 5% on the week. Last week’s drop pushed the S&P 500 into negative territory on a year-to-date […]

Covenant Weekly Synopsis as of December 4, 2015

December 7, 2015

Equities wobbled on Wednesday afternoon when Fed Chairman Yellen gave the market further evidence the Fed will raise interest rates at their next meeting on December 15/16th The wobble turned into a stagger on Thursday when European Central Bank President Mario “Do-Whatever-It-Takes” Draghi failed to meet market expectations (and/or hopes) in the form of additional […]

Covenant Weekly Synopsis as of November 13, 2015

November 16, 2015

“The terrorists in Paris are no more true Muslims than the KKK are true Christians”. – Pastor Robert Emmitt   What do you say about the terrorist attacks on Paris?  Really words don’t suffice…action does.  But the challenged posed by groups like ISIS and Al Qaeda is they are not state-sponsored organizations (at least not […]

Covenant Weekly Synopsis as of November 6, 2015

November 9, 2015

Developed world equity markets punched higher by about 1%, with domestic stocks recording their sixth consecutive week of gains. Chinese stocks rocketed up more than 7% entering a new bull market, though they remain more than 25% below their mid-summer highs. Following a strong October employment report, expectations of a December rate hike jumped (see […]

Covenant Weekly Market Synopsis as of October 30, 2015

November 2, 2015

Following two difficult months (and the worst quarterly performance in more than four years), global equity markets staged a massive rally in October recording their single strongest monthly performance in four years. The rally, which produced high-single-digit returns amongst developed and emerging market stocks appears to have been spawned by expectations of additional monetary stimulus […]

Covenant Weekly Synopsis as of October 23, 2015

October 26, 2015

Following a fourth consecutive week of equity market gains, October is shaping up to be a very strong month with developed and emerging markets up 8% or more thus far (additional market detail can be found here). Once again, much of the impulse for equity markets to move higher was delivered by central banker largesse. […]

Covenant Weekly Synopsis as of October 9, 2015

October 12, 2015

After the worst quarter since 2011, equities rebounded to post their best weekly performance of 2015. The S&P is now up nearly 8% from its recent lows and only about 5.5% from the all-time high set in May of this year. International developed and emerging market equities rose sharply and even beaten down commodities and […]

Covenant Weekly Market Synopsis as of October 2, 2015

October 5, 2015

Although last week saw positive moves across most asset classes, the third quarter served as a reminder that risky assets are risky. As concerns around China’s growth rate and uncertainty about the timing of a Fed rate hike competed for top billing in news headlines, risky asset classes sold off and at the sub-asset class […]

Covenant Weekly Market Synopsis as of September 25, 2015

September 28, 2015

Last week saw more pressure on risky assets: developed market indices declined between -1% and -3%, emerging markets fell more than -5% and emerging-emerging markets (aka frontier markets) were off by more than -2%. The biotech industry was particularly hard hit last week as the Nasdaq Biotech Index plunged -5.1% on Friday, capping a -13% […]

Covenant Weekly Synopsis as of September 18, 2015

September 21, 2015

Markets got what they wanted from the Fed, or at least what they had wanted from each previous Fed meeting over the last nine years….namely that the Fed refrain from raising interest rates. That happened again last Thursday, only this time the equity markets did not rally as they had in the past. Whether equities […]