Market Views and Research

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Six S&P500 stocks that outperformed during the COVID-19 sell-off

Posted on 2nd Jul 2020
#market views #stocks #diversification

One of the more interesting things I've observed in the markets over recent years is that while there has undoubtedly been inter-asset class integration (meaning during periods of turmoil correlations tend to 1 between stocks, bonds, real estate, commodities etcetera), we have actually observed intra-asset class divergence in many places. Or to put it in a more quantitative way: the correlation of for instance Netflix and Amazon with the S&P500 was lower than that of emerging market stocks and real estate to the S&P500 during the worst of the 2020 sell-off.... Read More

6 Tips for Achieving Portfolio Diversification in 2020

Posted on 27th Jun 2020
#investment process #diversification #market views

So far, 2020 has been nothing if not a wild ride for financial markets. The S&P500 started the year on a slow upwards grind and was up as much as 5% by February (which would have been a respectable result for the entire year if it had only stayed there). It then started dumping to the bottom from 19th February onwards, eventually going as far down as -30%. We all know what happened next as central banks stepped in to save the day, one after the other. Today, it would appear to me that markets remain fragile as risk levels remain elevated and concerns about things like global economic growth and the impact of COVID-19 but also geopolitics, trade friction, upcoming US elections etc. continue to weigh on sentiment.... Read More

Deliberations About the Market

Posted on 19th Jun 2020
#market views

As I sit out here in Asia watching my Bloomberg screens on a late Friday night / early Saturday morning I thought to share a few quick thoughts on the markets with you all. On my screen I see predictable headlines passing by about Ray Dalio warning that we may be looking at a "zero decade" for US stocks as profit margins reverse, JPMorgan discussing the highest ever levels in cross-asset correlation and another warning to add to the pile of endless screaming about how Robinhood traders are going to be the sole cause of the biggest bubble ever. Nothing new under the sun.... Read More

Shortest Bear Market in History

Posted on 11th Jun 2020
#market views

Last Monday, the S&P 500 returned positive year-to-date which is quite remarkable following the Covid-19 pandemic and resultant liquidity induced 34% correction witnessed mid-March. The Federal Reserve, and indeed other major central banks, unleashed unprecedented monetary stimulus to deal with this exodus of liquidity from risk assets.... Read More

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