Market insights and analysis

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

3rd Quarter | 2021

Market insights and analysis

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

It can be good to be a part of the herd

I never liked the concept of people being referred to as part of a herd. Yet it has become pretty common in the media.

Major U.S. stock market indexes were up last week. The S&P 500 increased by 0.61%, the Dow Jones Industrial Average was up 0.66%, the NASDAQ Composite rose by 0.48%, and the Russell 2000 small-capitalization index gained 0.77%. The 10-year Treasury bond yield fell 4 basis points to 1.55%, taking Treasury bonds higher for the week. Spot gold closed at $1,891.59, down 0.64%.

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

Last week, the gold spot price was down 0.64% and the U.S. Dollar Index was up 0.12%.

Last week, gold prices found support at the 50-day moving average on the weekly chart and then moved back up toward $1,900 per ounce.

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

Last week, the gold spot price was up 1.2% and the U.S. Dollar Index was up 0.02%.

The major U.S. stock market indexes ended higher for the week. The Russell 2000 small-cap index gained 2.45%, the NASDAQ Composite gained 2.08%, the S&P 500 was up 1.20%, and the Dow Jones Industrial Average gained 1.03%. The 10-year Treasury bond yield fell 3 basis points to 1.59%, taking bonds slightly higher for the week. Spot gold closed at $1,903.77, up 1.20%.

Is the economic glass three-quarters full?

In early May, my previous article asked the questions, “Have the Roaring ‘20s returned?” and “How good will it get for the economy?” as optimism improves regarding many significant aspects of the COVID pandemic in the U.S.

Last week, gold prices broke above their four-month high, closing the week at $1,904.50 per ounce.

Major U.S. stock market indexes were mostly down last week. The S&P 500 decreased by 0.39%, the Dow Jones Industrial Average was down 0.51%, the NASDAQ Composite increased by 0.31%, and the Russell 2000 small-capitalization index lost 0.42%. The 10-year Treasury bond yield fell 1 basis point to 1.62%, taking Treasury bonds higher for the week. Spot gold closed at $1,881.25, up 2.05%.

Exposed

Like a skeleton found in a closet, investors discovered in the first quarter of 2020 that their portfolios were not being managed in the manner in which they had believed.

U.S. equity markets were mixed last week. The S&P 500 lost 0.43%, the NASDAQ Composite gained 0.31%, and the Dow Jones Industrial Average lost 0.51%.

Last week, the gold spot price was up 2.05% and the U.S. Dollar Index was down 0.34%.

Gold prices broke through the weekly 50-day moving average closing the week at $1,838.10 per ounce.

The major U.S. stock market indexes finished lower last week. The Dow Jones Industrial Average lost 1.1%, the S&P 500 Index gave back 1.4%, the NASDAQ Composite tumbled 2.3%, and the Russell 2000 small-capitalization index dropped 2.1%. The 10-year Treasury bond yield rose 5 basis points to 1.63%, taking bonds lower for the week. Gold was the only winner. Spot gold closed at $1,843.43, up $12.19 per ounce, or 0.67%.

Concerned about what the market will do next?

If you’re like many people I’ve talked to lately, you may be concerned about what the market has in store when the current bull market comes to an end. Will we see a bear market decline in the 30%–40% range? Or, will it be a debilitating decline in the 50%–60% range like we have experienced twice in the past 20 years? No one knows.

Last week, the gold spot price was up 0.67% and the U.S. Dollar Index was up 0.10%.

U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 1.39%, the NASDAQ Composite lost 2.34%, and the Dow Jones Industrial Average lost 1.14%.

Gold prices declined early last week before rallying and closing at $1,838.10 per ounce.

ETF Deathwatch for April 2021

April ETF Deathwatch contains 294 zombie ETFs and ETNs.

The major U.S. stock market indexes ended mostly higher last week. The Dow Jones Industrial Average rose 2.67%, the S&P 500 gained 1.23%, the Russell 2000 was up 0.23%, and the tech-dominated NASDAQ Composite fell 1.51%. The 10-year Treasury bond yield fell 5 basis points to 1.58%, as bonds were largely up for the week. Spot gold closed at $1,831.24, up 3.51%.

The “Easy Button” is for real

It seemed like magic. Push the little red button and it transformed your life. That was the message of an early 2000s marketing campaign from Staples. I loved the thought of it. One touch, no further work or involvement, and your problems were solved.

U.S. equity markets posted gains in two of the three indexes last week. The S&P 500 gained 1.23%, the NASDAQ Composite lost 1.51%, and the Dow Jones Industrial Average gained 2.67%.

Last week, the gold spot price was up 3.51% and the U.S. Dollar Index was down 1.15%.

Gold prices spiked last Thursday (May 6) and continued rising Friday after the release of a weak U.S. jobs report.

Major U.S. stock market indexes ended mostly lower last week. The S&P 500 increased by 0.02%, the Dow Jones Industrial Average was down 0.50%, the NASDAQ Composite decreased by 0.39%, and the Russell 2000 small-capitalization index lost 0.24%. The 10-year Treasury bond yield rose 7 basis points to 1.63%, as Treasury bonds fell for the week. Spot gold closed at $1,769.13, down 0.45%.

Have the Roaring ’20s returned?

In an upcoming Proactive Advisor Magazine article, the author (a successful financial adviser) writes about a behavioral finance issue affecting several of his clients. As opposed to the typical fear seen in severe market declines, these clients are fearful about the sustainability of the massive market rally since March 2020. Whether you call it fear or greed, they do not want to see their current portfolio gains diminished.

U.S. equity markets posted losses in two of the three indexes last week. The S&P 500 gained 0.02%, the NASDAQ Composite lost 0.39%, and the Dow Jones Industrial Average lost 0.50%.

Last week, the gold spot price was down 0.45% and the U.S. Dollar Index was up 0.46%.

Gold prices stayed above the 50-day moving average, closing last week at $1,767.20 per ounce.

ETF Deathwatch

March ETF Deathwatch contains 298 zombie ETFs and ETNs.

The major U.S. stock market indexes finished mostly lower last week. The Dow Jones Industrial Average lost 0.5%, the S&P 500 Index slipped 0.1%, and the NASDAQ Composite fell 0.3%. In contrast, the Russell 2000 small-capitalization index gained 0.6%. The 10-year Treasury bond yield fell 2 basis points to 1.555%, leaving bonds flat for the week. Spot gold closed the week at $1,777.20, up $0.69 per ounce, or 0.04%.

Examining key factors of ESG investing

Last week we celebrated Earth Day. At this time of year, many investors reflect on the state of our planet and what they can do to make an impact. For some, this includes how and where they invest their money.

U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 0.13%, the NASDAQ Composite lost 0.25%, and the Dow Jones Industrial Average lost 0.46%.

Last week, the gold spot price was up 0.04% and the U.S. Dollar Index was down 0.76%.

Gold prices continued their upward trend last week, closing at $1,777.80 per ounce.

U.S. equity markets posted gains in all three indexes last week. The S&P 500 gained 1.37%, the Dow Jones Industrial Average gained 1.18%, and the NASDAQ Composite gained 1.09%.

Last week, the gold spot price was up 1.87% and the U.S. Dollar Index was down 0.66%.

Last week, gold prices broke above the 50-day moving average on the daily chart, closing the week at $1,780.20 per ounce.

When you go to a restaurant (remember those?), you know if you had a good meal. And you know if the service is above average and deserving of a larger tip than usual. Your five senses give you all the answers. But what about your investment manager? How do you know if he or she or they are doing a good job of managing your investments for you? The easy answer is, “Look at their performance.”

Equities were up in the first quarter despite some market choppiness during the rise. Domestic large-cap stocks were the worst performers, but the S&P 500 Index still gained more than 6.1%. The Russell 2000 small-capitalization index led the pack once again, gaining more than 12.5% for the quarter.

Major U.S. indexes ended mixed last week. The S&P 500 increased by 2.71%, the Dow Jones Industrial Average was up 1.95%, the NASDAQ Composite was up 3.12%, and the Russell 2000 small-capitalization index lost 0.46%. The 10-year Treasury bond yield fell 6 basis points to 1.66%, as Treasury bonds rose for the week. Spot gold closed at $1,743.88, up 0.84%.

Don’t let your heart rule your investments

This week, I want to talk about a well-documented pattern of investor behavior that does not serve their best interests: letting emotions rule investment decisions. We originally posted a version of this article last year just before the COVID crash.

Last week, gold prices continued moving up off the “double bottom” pattern identified in last week’s article. They broke above the resistance trend line that began at the start of 2021 and then approached the 50-day moving average before closing the week at $1,744.80 per ounce.

U.S. equity markets posted gains in all three indexes last week. The NASDAQ Composite gained 3.12%, the S&P 500 gained 2.71%, and the Dow Jones Industrial Average gained 1.95%.

Last week, the gold spot price was up 0.84% and the U.S. Dollar Index was down 0.82%.

The markets were up last week as we closed out the first quarter of the year. The tech-dominated NASDAQ Composite gained 2.60%, the Russell 2000 was up 1.49%, the S&P 500 gained 1.41%, and the Dow Jones Industrial Average rose 0.24%. The 10-year Treasury bond yield rose 5 basis points to 1.72%, though bonds as an asset class were largely up for the week. Spot gold closed at $1,728.87 for the week, down 0.19%.

Last week, the gold spot price was down 0.19% and the U.S. Dollar Index was up 0.18%.

U.S. equity markets posted gains in all three indexes last week. The NASDAQ Composite gained 2.60%, the S&P 500 gained 1.14%, and the Dow Jones Industrial Average gained 0.24%.