In the past few days, there’s been significant discussion about the rotation from large-cap equities to small-cap stocks. The move has been impressive – small caps have outperformed large caps by over 10% in just six days. But is this enough to break free from the prolonged underperformance that small caps have experienced since early […]
Small cap stocks have been on quite a tear the last few days, with the Russell 2000 marking its best 5-day run of performance since the first half of 2020. As an investor, buying into strength can be challenging, especially exceptional strength. However, history shows that strong performances in small caps often lead to continued […]
As we close out the first half of 2024, uncertainties abound. Will we finally see the recession that has been talked about for the past two years? Will the election throw the stock market into chaos? There’s certainly a wall of worry that the market will have to climb in the second half of 2024. […]
Exploring investment-grade corporate bonds unveils a landscape rich with potential returns. However, it’s crucial to recognize that not all market conditions are conducive to corporate debt. Like their equity counterparts, these bonds are intricately tied to the economic cycle, often exhibiting underperformance during periods of economic downturn and stock market weakness. Discerning which market environments […]
Yesterday, the technology sector experienced a substantial loss, dropping over 2.5% amidst heavy selling. To put this into perspective, if we look at the tech sector’s performance since 1999, yesterday’s decline ranks in the top 5% of the largest daily losses and marks the biggest drop since December 2022. For many investors, technology stocks have […]
Yesterday, the Census Bureau released its preliminary monthly U.S. Building Permits data. This indicator measures the change in the number of new building permits issued by the government and is a key economic metric. Why? Because building permits offers early signals about future construction activity, economic confidence, and broader economic trends. The issuance of building […]
On Monday, the latest figures from the Empire State Manufacturing Index were released. This leading economic indicator is often seen as a barometer for economic health. Why? Because businesses react swiftly to market conditions and shifts in their sentiment can be early signals of future economic activities like spending, hiring, and investment. While it’s often […]
In the world of fixed income, it’s crucial to recognize that not all bonds are cut from the same cloth. Investors typically invest in bonds for three primary reasons: safety of principal, income generation, and diversification from equities. It’s this diversification aspect that holds particular significance for long-term investors. However, as we move down the […]
As we approach the summer months, many investors are revisiting the old Wall Street adage: “Sell in May and Go Away.” This theory suggests that the stock market tends to underperform from May to October, leading some to suggest that investors should exit the market at the beginning of May and reenter at the end […]
The S&P 500 continues to reach milestones, hitting multiple all-time highs over the past two weeks, marking the first such achievement since late March of last year. Many investors may feel jittery about investing at all-time highs, fearing they’re buying into something that’s peaked in value. The common sentiment is that the market is “due” […]