Blog Posts tagged "emerging markets"

Income Report Card | April 2018

Author: Nathan Rowader
Date: April 16, 2018
Category: Asset Allocation, Financial Planning
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The market volatility that characterized most of February carried into March. Global stocks declined -2.21% led by a selloff in Japan, which declined by -2.79%. The decline was exacerbated only slightly by a decrease in the yen versus the U.S. dollar. Europe was the best performing segment of global stocks, declining -1.20%. However, the increase of the euro relative the U.S. dollar accounted for a substantial portion of the relative outperformance; in local currency, European stocks declined -2.02% for the month. Emerging markets gave up some of their year-to-date relative outperformance and declined -1.99% as the weight of a possible trade war dragged down Chinese stocks. U.S. stocks continued to be a market underperformer, declining -2.54% as the potential for a protracted trade war with China also weighed on future growth. On a bright note, small-cap U.S. stocks performed well with a gain of 1.29%. Defensive sectors rebounded as interest rates stabilized during the month with U.S. real estate increasing by 3.78% and utilities increasing by 3.76%.

Income Report Card | March 2018

Author: Nathan Rowader
Date: March 15, 2018
Category: Asset Allocation, Financial Planning
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The global stock market declined -4.20% in the month of February, putting an end to the historic run. Overall, global stocks had a maximum drawdown of -9.02% from the January 26th high, but recovered some of that loss through the rest of February. There were few places to hide from the sell-off as European stocks fell 5.88% and Japanese stocks fell -1.51%. However, the impact of currencies was more mixed in February than it has been in past months. The yen declined against the U.S. dollar in February, so local investors realized a loss of -3.71%. European investors, on the other hand, realized a better relative return of -3.69% due to the appreciation of the euro relative the U.S. dollar. U.S. stocks outperformed their foreign counterparts with a loss of -3.69% while small-cap U.S. stocks declined -3.87%. The sell-off took a toll on energy stocks, which were just starting to climb out of their rut in January, declining -10.84% in February, as measured by the S&P 500 Energy Sector.

Income Report Card | May 2017

Author: Nathan Rowader
Date: May 8, 2017
Category: Asset Allocation, Financial Planning
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April once again favored foreign stocks over domestic stocks. International stocks increased by 2.61%, outperforming emerging market (EM) stocks, which increased by 2.21%. U.S. stocks managed to finish the month with a positive return of 1.03%. Global bonds increased by 1.13% during the month with foreign bonds outperforming domestic bonds driven by appreciation of foreign currencies against the U.S. dollar, particularly the euro. International and EM sovereign bonds increased by 1.79% and 1.70%, respectively, while U.S. Treasurys increased by 1.70%. Credit-sensitive sectors gained, but trailed the robust gains in global sovereign markets. U.S. high-yield corporate bonds increased by 0.81% and EM corporate bonds increased by 1.48%.

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Income Report Card | April 2017

Author: Nathan Rowader
Date: April 7, 2017
Category: Asset Allocation, Financial Planning
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March strongly favored foreign stocks over domestic stocks. International developed stocks increased by 2.8%, slightly outperforming emerging market (EM) stocks, which increased by 2.5%. U.S. stocks managed to finish the month with a slightly positive return of 0.1%. Overall, U.S. markets didn’t favor income-producing stocks, as utilities, U.S. real estate and MLPs all declined during March. Global bonds increased by 0.2% during the month with foreign bonds outperforming domestic bonds. International and emerging market sovereign bonds increased by 0.3% and 0.4%, respectively, while U.S. Treasurys fell -0.1%. Even credit-sensitive sectors such as high-yield corporate bonds fell -0.2%.

Navigating Emerging Markets in the Second Quarter and Beyond

Author: David Ruff
Date: August 6, 2015
Category: Emerging Markets
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During the second quarter, non-U.S. equities experienced heightened volatility but managed to hold onto a small positive return. The quarter started on a positive note with central banks globally providing accommodation in spite of anticipated tightening moves by the U.S. Federal Reserve (Fed), possibly before year-end.

Don’t Stop Believing: The Case for International Equities

Author: David Ruff
Date: March 12, 2015
Category: Emerging Markets
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Diversification is an important element to a portfolio, adding a significant measure of risk management. Because of our strong belief in this philosophy, all the portfolios my team manages are diversified not only by U.S. and non-U.S., but by sector, country and market cap as well.


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