Last Friday, we hosted Colin Ireland, Senior Research Strategist of State Street Global Advisors, to discuss his observations of the volatility experienced by global markets at the beginning of February.
The last week has been a very quick reversal of a nearly 14-month upswing in the global markets. Yesterday, in particular, was a wake-up call that markets are not always tame and conducive to making money. We offer below some answers to questions we have received and hope that they help. We continue to monitor the environment and will do our best to preserve our clients’ hard-earned savings.
The market has been on an upswing that has lasted longer than any time period in history without a 5% correction. 422 days when the average is typically about 200 days. The
A year ago, we wrote that all we wanted for Christmas was a bull market. Thank you, Santa! We thought we had been good but never thought we were that good. The 4th quarter continued the trend that existed all year with markets ending on a strong note. For the first time since 2012, international markets outperformed the US. The weakness of the dollar relative to the Euro and the Yen represented the primary contributor to international’s strength. When viewed from a local market perspective, Japan maintained the same strength as the US while Europe lagged given the lower growth
This is a phrase we heard a lot on our last visit to London. Though repeated as the subway doors open, it brings other ideas to us. Specifically, the gap between the expectations of some investors and what turns out to be the reality. All bubbles eventually “pop” (or at least deflate). Among other issues highlighted in this issue of our newsletter, we ask investors to consider that all assets follow a cycle, but not all assets follow the same cycle; a broader viewpoint may be necessary for distinguishing a cycle’s characteristics.
“The market always does what is least
We like games, but not all games. Some make us tense such as the Hasbro game named Operation. As a child growing up in a warm and nurturing environment, hearing the BUZZ as you touched the side not only scared you, but risked driving you to tears. We believed we could have killed someone if given a plastic scalpel. Jenga is another game that makes us tense. To make it worse, it is not just your actions that could drive to failure. Those players before you place the tower of blocks in an ever more unstable situation. But