January 29, 2016
Lost among all the chatter about China and its effects on oil prices, global economies, and capital markets is the evolution of its workforce, which can at least partially explain some of the “hard landing” scenarios discussed for the country. More specifically, the slowing growth in China’s working age population is not expected to reverse, and this trend could have a meaningful impact on future growth prospects, both domestically and abroad.
January 22, 2016
In 2015, the emerging market equity index declined 14.9%. While there are a variety of explanations for this, one can not underestimate the impact of a stronger dollar. In fact, currency losses were responsible for more than 60% of the decline for U.S.-based investors.
January 15, 2016
On January 8th, the U.S. Bureau of Labor Statistics released the unemployment rate for December 2015 and additionally on January 12th released the Job Opening and Labor Turnover (JOLT) report for November 2015. This week’s chart focuses on these two reports and the strength of the U.S. labor market as we enter 2016.
January 8, 2016
This week’s Chart of the Week shows what is commonly referred to as a “Periodic Table of Investment Returns”. It is a table showing historic calendar year returns for various asset classes ranked in order of performance from best to worst. One of the key takeaways from this table is that 2015 was a particularly challenging year for investment returns.
December 17, 2015
The recent sell-off in the U.S. High Yield market has caused concern among investors and many worry that the situation will worsen before improving; this is especially concerning because of its effects on portfolio values before calendar year-end. The Credit Suisse High Yield Index returned -1.08% on Friday December 11th and recorded another down day when the markets reopened on Monday with a return of -1.39%.
December 11, 2015
In testimony before the House Financial Services Committee on November 4, Federal Reserve Chairwoman Janet Yellen remarked that a rate hike was still a “live possibility” in December, should economic data remain supportive.
December 4, 2015
What has become known as the Great Recession officially came to an end in June 2009. Since then, GDP has expanded to new real highs, we are approaching full employment, and the U.S. dollar is the strongest it has been in the past decade. Though various issues remain within the economy, overall things seem to be going well.
November 20, 2015
This week’s Chart of the Week examines the relative performance of growth versus value. The above chart shows the price level of the Russell 3000 Growth index relative to the Russell 3000 Value index. Growth is outperforming value when the line is in an uptrend and value is outperforming growth when the line is trending downward.
November 13, 2015
This week’s Chart of the Week shows the divergence in Monetary Policy from the ECB, Bank of Japan and Federal Reserve. The Federal Reserve discontinued its quantitative easing (“QE”) strategy October 29th 2014; in contrast, after the end of 3Q14, the Bank of Japan and European Central Bank have increased asset holdings 30% and 26%, respectively.
November 5, 2015
Certain emerging markets countries have not been safe from being thrown out as “babies with the bathwater” during the past year’s global credit selloff trend.