Bulls and bears have been frustrated by the lack of market conviction. Can earnings season give us the answer? Find out more from Sendero’s Vice President of Research and Strategy, Amaury de Barros Conti.
Market Update: Trade truce and earnings season
Trade truce and earnings season: Is the market primed for more upside? Find out more from Sendero’s Vice President of Research and Strategy, Amaury de Barros Conti.
Market Update: Can 2020 corporate profit expectations remain strong despite the latest economic slowdown?
Can 2020 corporate profit expectations remain strong despite the latest economic slowdown? Find out more from Sendero’s Vice President of Research and Strategy, Amaury de Barros Conti.
Market Update: Could disappointing earnings add to weakening economic data?
This week, investors are turning their attention to earnings season for direction amid trade tensions. Could disappointing earnings add to weakening economic data? Find out more from Sendero’s Vice President of Research and Strategy, Amaury de Barros Conti.
Market Update: Now that the Fed cut rates, what should investors pay attention to?
Will the economic data warrant another interest rate cut? After a volatile week, investors turn their attention to the economic calendar for direction. Find out more from Sendero’s Vice President of Research and Strategy, Amaury de Barros Conti.
Market Update: Will the rotation out of momentum stocks into value persist?
After a rapid shift in preference last Monday, investors are leaning towards stocks in companies seen as cheaper over riskier assets. Find out more from Sendero’s Vice President of Research and Strategy, Amaury de Barros Conti.
Market Update: Rising Stocks Could Indicate Rate Cuts Later This Month
Hear about how slightly slower hiring in August may lead to more Federal Reserve interest rate cuts from Sendero’s Vice President of Research and Strategy, Amaury de Barros Conti.
What happens next after the longest bull market in history?
We are officially in the longest bull market in history and know that market rallies can’t be sustained forever. So, what happens next?
There are two main scenarios to think about when a market starts to unwind: market correction and bear market.
Market Correction
A market correction is a 10% drop from a previous high. Investors should not try to time the market. Corrections can be scary, but they are actually frequent, necessary and a normal part of investing. For example, the S&P 500 Index suffered a correction in 2016 but ended the year up 9.5%.
Bear Market
A bear market is a 20% drop or more from a previous index high. Bear markets are the most prolonged market deterioration measure used by investors. Officially, a bear market is declared when an index falls to those levels for a period longer than two months. In 2008, the S&P 500 fell over 20% in the period ranging from January 2008 to March 2008, and an official bear market was declared. Economic growth held up for a few months but turned negative soon after the market deteriorated. The stock market is often a leading indicator of the economy.
Recession
A recession is connected to economic slowdowns, which usually consist of two consecutive quarters of negative GDP growth. Recessions have little to do with the market itself but can have an impact on overall investor sentiment, leading to periods of market stress. These conditions usually last about 6–18 months, anything longer than that is called a depression. For example, GDP declined in the last two quarters of 2008 and the first two of 2009. This is technically what an economic recession represents. Furthermore, it is possible to have an economic recession without a bear market and vice versa.
How does this affect your portfolio?
At Sendero, we understand the importance of asset allocation and the benefits of a prudent approach to diversification. It is important for investors to be prepared for times of negative returns by setting long term goals. In addition, creating a portfolio tailored to meet your expectations and mitigate risk will help you navigate the market with peace of mind.
Market Update – September 3, 2019
Following Labor Day Weekend, find out how new economic data may impact the Fed’s upcoming rate cuts from Sendero’s vice president of research and strategy, Amaury de Barros Conti.
Tactical Asset Allocation – July 2019
Every quarter we publish the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. This report reflects the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. The comments reflect opinions as of the specific date listed above and can change quickly based on market conditions. Tactical Asset Allocation – July 2019
