Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

1st Quarter | 2022

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 2.13%, the NASDAQ Composite lost 2.63%, and the Dow Jones Industrial Average lost 0.78%.

Last week, the gold spot price was up 1.34% and the U.S. Dollar Index was up 0.53%.

Rising inflation and geopolitical concerns loomed large during the first quarter. Viewed by some as “transitory” in late 2021, inflation has persisted, rising to levels not seen in over 40 years. The Federal Reserve is expected to increase interest rates several times over the remainder of the year in an effort to manage inflation. These rate hikes will likely slow economic growth relative to where growth was at the beginning of the year. Slowing the economy is designed to bring the high inflation rates down in the future.

To many, there is nothing more meditative and relaxing than building and nurturing a garden. As Rutgers University professor Joel Flagler explains it, “There are certain, very stabilizing forces in gardening that can ground us when we are feeling shaky, uncertain, terrified really. It’s these predictable outcomes, predictable rhythms of the garden that are very comforting. …”

Last week, gold prices broke out from their consolidation, climbing steadily upward.

The major U.S. stock market indexes finished down last week. The Dow Jones Industrial Average lost 0.3%, the S&P 500 Index fell 1.3%, the NASDAQ Composite dropped 3.9%, and the Russell 2000 small-capitalization index gave back 4.6%. The 10-year Treasury bond yield rose 3 basis points to 2.704%, sending bond prices lower for the week. In fact, the long-term Treasury bond ETF (TLT) fell 5.5% last week. In contrast, gold futures closed at $1,948.50, up $24.80 per ounce, or 1.29%.

Recently, I was listening to an expert on investor psychology who stated, “Investors feel comfortable investing when markets are behaving as they expect.” That made me think about my article about the emotions of fear, uncertainty, and doubt (FUD) and their often negative influence on investors’ decisions. It also made me think back to the many conversations I have had with investors and advisers about the wide range of uncertainties we all have to face throughout life.

Last week, the gold spot price was up 1.14% and the U.S. Dollar Index was up 1.18%.

U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 1.27%, the NASDAQ Composite lost 3.86%, and the Dow Jones Industrial Average lost 0.28%

Economic war

Last week, gold prices consolidated above their support level at $1,900 per ounce.

March ETF Deathwatch contains 364 zombie ETFs and ETNs.

Did you know that April is Financial Literacy Month? Financial Literacy Month was designated officially by the United States Senate in 2004 via Resolution 316, during the administration of George W. Bush. According to Forbes, “The campaign began as Youth Financial Literacy Day, first introduced by the National Endowment for Financial Education (NEFE). In 2000, NEFE handed over the reins to the Jump$tart Coalition, which expanded the one-day campaign to an entire month called Financial Literacy for Youth Month. The event’s name was eventually changed to Financial Literacy Month.”

The major U.S. stock market indexes were mostly up last week. The S&P 500 increased by 0.06%, the Dow Jones Industrial Average lost 0.12%, the NASDAQ Composite was up 0.65%, and the Russell 2000 small-capitalization index gained 0.63%. The 10-year Treasury bond yield fell 9 basis points to 2.38%, taking Treasury bonds higher for the week. Spot gold closed the week at $1,925.68, down 1.67%.

Last week, the gold spot price was down 1.67% and the U.S. Dollar Index was down 0.16%.

U.S. equity markets posted gains in two of the three indexes last week.

Gold and rubles

Gold prices once again tested the support level at $1,900 per ounce.

The major U.S. stock market indexes finished mostly up last week. The Dow Jones Industrial Average gained 0.3%, the S&P 500 Index rose 1.8%, the NASDAQ Composite picked up 2.0%, and the Russell 2000 small-capitalization index dropped 0.4%. The 10-year Treasury bond yield jumped 34 basis points to 2.493%, sending bond prices lower for the week. Spot gold closed the week at $1,959.90, up $26.00 per ounce, or 1.34%.

When we think of our lives or just talk about what we have been doing lately with a friend, we tend to focus on big events. If we have just started a new job or a baby was born, the event dominates our conversations. Similarly, political and economic news can consume the headlines and color what we think is occurring around us.

Last week, the gold spot price was up 1.91% and the U.S. Dollar Index was up 0.57%.

U.S. equity markets posted gains in all three indexes last week. The S&P 500 gained 1.79%, the NASDAQ Composite gained 1.98%, and the Dow Jones Industrial Average gained 0.31%.

Gold prices climbed after testing support at $1,900 per ounce, closing the week at $1,954.20 per ounce.

February ETF Deathwatch contains 360 zombie ETFs and ETNs.

Overnight change?

The calendar says that now it’s spring in the Northern Hemisphere. It arrived at 11:33 a.m. EST on Sunday. On Saturday, it was winter. On Sunday, it was spring. Just like that, an overnight change in seasons.

The major U.S. stock market indexes were up last week, rebounding from downward movements that pulled the NASDAQ into bear market territory. The NASDAQ posted the strongest performance with an 8.18% gain, the S&P 500 rose 6.16%, the Dow climbed 5.50%, and the Russell 2000 jumped 5.38%. The 10-year Treasury bond yield rose 16 basis points to 2.15%, continuing a strong upward trend for the year. Spot gold closed the week at $1,921.62, down 3.36%.

U.S. equity markets posted gains in all three indexes last week. The S&P 500 gained 6.16%, the NASDAQ Composite gained 8.18%, and the Dow Jones Industrial Average gained 5.50%.

Last week, the gold spot price was down 3.36% and the U.S. Dollar Index was down 0.90%.

Gold prices tested support at $1,900 per ounce before rallying to close the week at $1,929.30 per ounce.

The major U.S. stock market indexes were down last week. The S&P 500 decreased by 2.88%, the Dow Jones Industrial Average lost 1.99%, the NASDAQ Composite was down 3.53%, and the Russell 2000 small-capitalization index lost 1.06%. The 10-year Treasury bond yield rose 26 basis points to 1.99%, taking Treasury bonds lower for the week. Spot gold closed the week at $1,988.46, up 0.90%.

Some time ago, I listened to an interview on Bloomberg radio with Thomas Gilovich, a well-known professor of psychology at Cornell University. He has conducted research in social psychology and behavioral economics, with a focus on human biases in decision-making. He is the author of several books, including “How We Know What Isn’t So: The Fallibility of Human Reason in Everyday Life.”

Last week, the gold spot price was up 0.9% and the U.S. Dollar Index was up 0.48%.

U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 2.88%, the NASDAQ Composite lost 3.53%, and the Dow Jones Industrial Average lost 1.99%.

Gold prices broke decisively above the $2,000.00 per ounce barrier, hitting $2,075.00 per ounce, before falling back to $1,985.00 per ounce to close the week.

It was over 30 years ago. I sat in a pew in a little church on the village green of Franklin, Michigan. It was the usual Sunday service, but I was stirred by the sermon from a minister who was still relatively new to me.

The major U.S. stock market indexes finished down last week. The Dow Jones Industrial Average gave up 1.3%, the S&P 500 Index lost 1.2%, the NASDAQ Composite sank 2.8%, and the Russell 2000 small-capitalization index dropped 2.0%. The 10-year Treasury bond yield fell 21 basis points to 1.747%, sending bond prices higher for the week. Spot gold closed the week at $1,991.19, up $101.85 per ounce, or 5.39%.

Last week, the gold spot price was up 4.31% and the U.S. Dollar Index was up 2.1%.

U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 1.27%, the NASDAQ Composite lost 2.78%, and the Dow Jones Industrial Average lost 1.30%.

Currency wars

The price of gold climbed last week, challenging the high it reached when news broke that Russia invaded Ukraine.

January ETF Deathwatch contains 362 zombie ETFs and ETNs.

The major U.S. stock market indexes were mostly up last week. The Russell 2000 gained 1.57%, the S&P 500 rose 0.82%, the NASDAQ Composite climbed 1.08%, and the Dow Jones Industrial Average lost 0.06%. The 10-year Treasury bond yield rose 3 basis points to 1.96%. It continued an upward trend that began in mid-December, though it fell sharply coming into this week. Spot gold closed at $1,889.34, down 0.48% for the week.

U.S. equity markets posted gains in two of the three indexes last week.

Last week, the gold spot price was down 0.48% and the U.S. Dollar Index was up 0.60%.

A few years ago, I was reading an article about Dennis Gartman, a well-known market professional and frequent financial news commentator. According to Financial Advisor’s story, “A risky crypto bet dented Dennis Gartman’s retirement account.” Gartman reportedly had told CNBC less than two months prior to the story that bitcoin “is nonsense.”

The price of gold shot up last Thursday (February 24) when news broke that the Russian invasion of Ukraine had begun.

Market Update 2/22/22

Major U.S. stock market indexes were down last week. The S&P 500 decreased by 1.58%, the Dow Jones Industrial Average lost 1.90%, the NASDAQ Composite was down 1.76%, and the Russell 2000 small-capitalization index lost 1.03%. The 10-year Treasury bond yield fell 1 basis point to 1.93%, taking Treasury bonds higher for the week. Spot gold closed at $1,898.43, up 2.13%.

U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 1.58%, the NASDAQ Composite lost 1.76%, and the Dow Jones Industrial Average lost 1.90%.

Last week, the gold spot price was up 2.13% and the U.S. Dollar Index was down 0.04%.

DIY investing has surged during the pandemic. A survey of online brokerage operations showed new account openings up 50%–300% in the first quarter of 2020. According to CNBC, Robinhood, the darling of the younger generation, added 10 million accounts in 2021 (though it appears their monthly active users are declining slightly).

The price of gold surged again last week, moving above last November’s highs, and is now poised to challenge the highs from last summer.

Market Update 2/15/22

The major U.S. stock market indexes were mostly down last week. The Dow Jones Industrial Average lost 1.0%, the S&P 500 Index fell 1.8%, the NASDAQ Composite declined 2.2%, and the Russell 2000 small-capitalization index gained 1.4%. The 10-year Treasury bond yield rose slightly to 1.916%, sending bond prices flat to slightly lower for the week. Spot gold closed at $1,858.76, up $50.48 per ounce, or 2.79%.

U.S. equity markets posted losses in all three indexes last week.