Commentary | 4Q 2018

If I could turn back time, If I could find a way” – Cher, “If I Could Turn Back Time”, 1990 2018 Q4 Market Recap Let us turn back time, if we could, and revisit the halcyon days of September 2018. Equity investors would have felt relatively sanguine heading into the 4th quarter. Markets (particularly…

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Commentary | 3Q 2018

Market Recap The Federal Reserve hiked rates for the 3rd time this year, global trade agreements and alliances are being redrawn, US inflation and yields are on the rise, but the US equity markets hit all-time highs. The news overseas is none too cheery – the UK and the EU still don’t have a Brexit…

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Commentary | 2Q 2018

Market Environment The 2nd quarter of 2018 shared certain macroeconomic and market themes with the 1st quarter. However, there were new developments too that manifested in sector and style equity returns during the quarter. Dollar Appreciation The US dollar reversed its 5-quarter streak of depreciation, and turned sharply higher against most currencies. The bottoming and…

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Value & Growth Equity Strategies: Style bets or Sector bets?

We make the case that investments in value and growth equity products, especially of the passive variety, are tantamount to bets on sectors rather than styles. Hence, investors need to be cognizant of sector effects either when evaluating historical performance, or when allocating capital. Click the link below to read what we believe… Affinity Investment…

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Commentary | 1Q 2018

Economic conditions in the first quarter of 2018, as exhibited by readings on the Institute of Supply Management’s Purchasing Manager’s Index (PMI®) and the year-over-year growth rate of the Conference Board’s Leading Economic Index®, remained consistent with increases in corporate profits. The Atlanta Fed’s GDPNow economic model is forecasting real economic growth during the first…

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Commentary | Q4 2017

December 2017 The market began a rapid move upward right after the Presidential Election of 2016 and the trajectory continued throughout 2017. At the end of 2017, most stock market indexes were at or near all-time highs. The market was buoyed by expectations of a reduction in tax rates, a reduction in regulations, little or…

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Commentary | Q3 2017

September 30, 2017 – The stock market’s favorable performance reflected rising profits and an improving economic environment which began in the second quarter of 2017. Real growth rose at a rate slightly above 3% in the second quarter, and initial indications are growth continued at a rate above 2% in the third quarter. If economic growth…

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Commentary | June 2017

Quarterly Commentary The rise in stock prices in the quarter brought the market to a level that is at or near its historic high. While stock prices rose, so did valuations as earnings increases did not keep pace with price increases on average. The market, as measured by almost any broad based index, is now…

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Commentary | March 2017

Quarterly Commentary The market’s ascent in the first quarter continued a trend that began shortly after the November 2016 election.  Market participants seem to be expecting the implementation of new economic policies designed to produce an increased rate of growth for corporate profits as well as the overall economy. The new favored policies are likely…

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