Market insights and analysis

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

2nd 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.

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.

Last week, the gold spot price was up 2.79% and the U.S. Dollar Index was up 0.63%.

Throughout my life, I have been a fan of science fiction. To pick up a book that can take me on a journey through space or time has never failed to remove me from the everyday and broaden my horizons.

The price of gold surged 1.9% on Friday (February 11), hitting a three-month high, and then closed the week at $1,842.10 per ounce.

Market Update 2/8/22

The major U.S. stock market rebounded last week after recent, significant sell-offs. The S&P 500 rose 1.55%, the Dow Jones Industrial Average gained 1.05%, the NASDAQ Composite rose 2.38%, and the Russell 2000 gained 1.72%. The 10-year Treasury bond yield rose 14 basis points to 1.91%, continuing a strong upward trend that began in mid-December 2021. Spot gold closed the week at $1,808.28, up 0.93% for the week.

Last week, the gold spot price was up 0.93% and the U.S. Dollar Index was down 1.84%.

U.S. equity markets posted gains in all three indexes last week. The S&P 500 gained 1.55%, the NASDAQ Composite gained 2.38%, and the Dow Jones Industrial Average gained 1.05%.

This column has explored the topic of risk management in some detail over the years, addressing several questions: Are the retail investor and financial adviser underserved by the buy-and-hold philosophy? What is the potential role of dynamic, risk-managed strategies in investors’ portfolios? How might modern risk-managed portfolios be best constructed on a conceptual level?

Last week, gold continued its consolidation, finding support at its 50-day and 200-day moving averages.

Market Update 2/1/22

Major U.S. stock market indexes were mostly higher last week. The S&P 500 increased by 0.77%, the Dow Jones Industrial Average gained 1.34%, the NASDAQ Composite was up 0.01%, and the Russell 2000 small-capitalization index lost 0.98%. The 10-year Treasury bond yield rose 1 basis point to 1.77%, taking Treasury bonds lower for the week. Spot gold closed at $1,791.53, down 2.39%.

In a tumultuous week for the equity and gold markets, gold fell from $1,831.80 per ounce the previous week to $1,786.60 per ounce as of January 28.

“Nothing is certain except death and taxes.” How often that phrase has been quoted since Ben Franklin penned it in a letter to his friend, the French scientist Jean-Baptiste Leroy, in the midst of the French Revolution.

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

Last week, the gold spot price was down 2.39% and the U.S. Dollar Index was up 1.7%.

The major U.S. stock market indexes were down last week. The Dow Jones Industrial Average lost 4.6%, the S&P 500 Index fell 5.7%, the NASDAQ Composite declined 7.6%, and the Russell 2000 small-capitalization index dropped 7.9%. The 10-year Treasury bond yield slipped two basis points to finish at 1.759%, sending bond prices flat to slightly higher for the week. Spot gold closed at $1,817.38, up $17.44 per ounce, or 0.96%.

U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 5.68%, the NASDAQ Composite lost 7.55%, and the Dow Jones Industrial Average lost 4.58%.

Last week, the gold spot price was up 0.96% and the U.S. Dollar Index was up 0.50%.

Change is a constant

As has probably been the case for all of you, change has been a significant part of my life. I was fortunate that when I attended college, times they were “a-changin’.” The computer age was dawning. I was able to see the potential of combining traditional investment analysis with the powerful abilities of the PC. A change was necessary. The type of analysis I wanted to do was too computational. It was too intensive to do by hand, and it was not easily repeatable.

Last week, gold prices continued to trend upward after finding support at their 50-day and 200-day moving averages.

Equities were up for the quarter, finishing 2021 near all-time highs. The S&P 500 Index was the leader for the quarter with an 11.0% gain. The Russell 2000 small-capitalization index was the domestic laggard, up only 2.1%. Emerging markets were the worst performers, falling about 1.6%.

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

Last week, the gold spot price was up 1.19% and the U.S. Dollar Index was down 0.58%.

A few years ago, staff members were waiting for us at the airport, which was teeming with people when the transatlantic plane touched down. In a crowded, cavernous room, with signs everywhere, they found our luggage and escorted us through customs. Whisked into a private car, they sped us to the dock and our rivercraft.

Inflation on the rise

Last week, gold prices continued to hold above their 50-day and 200-day moving averages.

December ETF Deathwatch contains 356 zombie ETFs and ETNs.

Major U.S. stock market indexes were down last week. The S&P 500 decreased by 1.87%, the Dow Jones Industrial Average was down 0.29%, the NASDAQ Composite fell 4.53%, and the Russell 2000 small-capitalization index lost 2.92%. The 10-year Treasury bond yield rose 25 basis points to 1.76%, taking Treasury bonds lower for the week. Spot gold closed at $1,796.55, down 1.78%.

They say New Year’s resolutions are meant to be broken. I am sure there are at least a few readers of this article who are already frustrated—10 days into the year—by their inability to follow through on some of their well-intentioned resolutions.

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

Last week, the gold spot price was down 1.78% and the U.S. Dollar Index was up 0.05%.

Inflation fuel

Last week, gold prices retraced back to support at their 50-day and 200-day moving averages.

The major U.S. stock market was mostly up last week, finishing a strong year. The S&P 500 rose 0.85% last week and was up 26% for the year. The Dow Jones Industrial Average gained 1.08% for the week and 18.73% for the year. The NASDAQ Composite fell 5 basis points for the week but finished up 21.39% for the year. The Russell 2000 gained 0.17% for the week and 13.70% for the year. The 10-year Treasury bond yield rose 2 basis points to 1.51% for the week, as bonds gave up some recent returns. At the beginning of 2021, rates were at 0.91%. Spot gold closed the week at $1,829.20, up 1.13% for the week. For the year, the metal was down 3.64%.

Seasonal musings

When I sat down to write this article, my wife was beginning to take down the Christmas decorations. She loves Christmas and tries to make our home as festive as possible for the holidays. When they all come down in January, it is a bit depressing.