Blog Posts tagged "valuation"

Income Report Card | December 2017

Author: Nathan J. Rowader
Date: December 19, 2017
Category: Asset Allocation, Financial Planning
Tags: , , , , , , , ,

November is historically a strong month for stocks, which typically leads to the historically stronger month of December. Global stocks ended November with a gain of 1.94%, led primarily by U.S. and Japan, which increased by 3.07% and 2.99%, respectively. Europe and the emerging markets (EM) didn’t fare as well, increasing by 0.22% and 0.20%, respectively. Small-cap U.S. stocks posted a strong month, increasing by 2.88%. November ended on a high note with nearly every major stock market hitting all-time highs on or within a week of 11/30. Market breadth was also strong, indicating a healthy bull market, as the advance-decline lines of most major stock markets coincidentally hit all-time highs in line with stock prices.

Income Report Card | November 2017

Author: Nathan J. Rowader
Date: November 15, 2017
Category: Asset Allocation, Financial Planning
Tags: , , , , , , , , , , ,

Historically, September and October tend to be the weakest months for stocks, but this year has been different as global stocks increased by 2.08% in October. The gains were broad based, with Japan increasing by 4.61% following Prime Minister Shinzō Abe’s reelection and emerging markets (EM) increasing by 3.51%. Other major markets gained as well, with U.S. stocks increasing by 2.33% and European equities gaining 0.47%. Small-cap stocks underperformed large-cap stocks, increasing by 0.85% and underperforming the S&P 500. Gains in foreign markets overcame weakness in the euro and yen relative to the dollar, which gained slightly less than 1% compared to other major developed currencies.

Income Report Card | September 2017

Author: Nathan J. Rowader
Date: September 12, 2017
Category: Asset Allocation, Financial Planning
Tags: , , , , , , , , , , ,

Global stocks had a decent month with the MSCI All Country World Index ending the month of August with a gain of 0.44%. However, nearly all this advance can be attributed to the emerging markets (EM). The MSCI Emerging Markets Index gained 2.23% for the month of August while the S&P 500 Index gained 0.31%, the MSCI Europe Index gained 0.06% and the MSCI Japan Index lost -0.05%. Small-cap stocks continue to have a rough time, as the Russell 2000 Index declined by -1.27% on the month. Because of the strong August performance, the MSCI Emerging Markets is up 28.29% year-to-date, nearly three times the gain of the S&P 500, which is up 11.93% in 2017. Last month, we discussed the impact of currency and that much of the gains in foreign stocks and bonds can be attributed to the rise of the euro and yen relative the dollar. Since this has been a key macro event driving foreign assets, it should be no surprise that August’s lackluster returns for foreign stocks was accompanied by a decline in the U.S. Dollar Index, which fell -0.21% for the month.

Income Report Card | August 2017

Author: Nathan J. Rowader
Date: August 10, 2017
Category: Asset Allocation, Financial Planning
Tags: , , , , , , , , , ,

July was generally a good month for all global markets as the MSCI All Country World Index increased by 2.79% led by the emerging markets (EM), which increased by 5.96%. EM was led by some of the larger economies, including China and India, which increased by 8.89% and 7.70%, respectively. U.S. stocks reached new highs in July as the S&P 500 Index increased by 2.06% and the CBOE Volatility Index reached record lows. From a sector standpoint, it is hard to put a label on July’s increase in the S&P 500 as the top sectors were a mix of 2017 favorites, such as technology, and some of 2017 laggards, such as telecom. Europe outperformed the U.S. and increased by 2.99% led by some of the peripheral economies such as Portugal and Ireland, which increased by 5.42% and 4.67%, respectively.

Don’t Stop Believing: The Case for International Equities

Author: David L. Ruff, CFA
Date: March 12, 2015
Category: Emerging Markets
Tags: , , , , , ,

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.

Managing Risk | Part 2: Look to the Future, Not the Past

Author: Nathan J. Rowader
Date: September 11, 2014
Category: Financial Planning
Tags: , , , , , ,

Last week we began a discussion on managing portfolio risk and the dangers of relying on averages. One of the core issues that make averages so ineffective in managing risk is that they rely heavily on the past. Investing is focused squarely on the future, so relying solely on past information ignores much of the useful information available to you right now. So, what sort of current information can you incorporate into the portfolio construction process?


The information contained on this web site reflects thoughts and opinions of Salient Capital Advisors, LLC (“Salient”) employees only, and the firm is not soliciting any transaction based upon such information.

The contents of this web site are for informational purposes only and may not reflect current financial developments or market conditions. You should not act or refrain from acting on the basis of any content included in this web site without seeking financial or professional advice on the particular facts and circumstances at issue. Salient reserves the right to change any information contained herein without prior notice. Salient is not responsible for any third-party content that may be accessed through this web site. The distribution or photocopying of Salient information contained on or downloaded from this site is strictly prohibited without the express written consent of Salient.

Salient research has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Salient recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Salient research or any portion thereof may not be reprinted, sold or redistributed without the written consent of Salient. Salient research is disseminated and available primarily electronically, and, in some cases, in printed form. The information on this web site is for U.S. residents only.

Research and Advisory Services provided by Salient Capital Advisors, LLC, a wholly owned affiliate of Salient Partners, L.P. Salient Capital Advisors, LLC is an investment advisor registered with the U.S. Securities and Exchange Commission.