U.S. stocks advanced 3.5% in February, closing out their best two-month start to a year (+12.4%) in over three decades. After falling 19% from early October through December 24, U.S stocks have now rebounded 20% since Christmas. Smaller companies have led the U.S. markets with 25% gains over this period.
Stocks bounced back after a dismal December to register the best January returns in 30 years. Investors were encouraged by good news from the Federal Reserve, a strong labor market, tepid inflation, and solid corporate profits. Global equities and bonds ended the month with returns of 7.9% and 1.5%, respectively. U.S. stocks have advanced roughly 15% since the lows reached on Christmas Eve. With 41% of the companies in the S&P 500 reporting, corporate profits are on pace to increase by nearly 12%, according to FactSet.
U.S. stocks plummeted over 9% in December and ended down 14% for the quarter. The daily volatility during the quarter was nothing short of remarkable. Market leverage and quantitative trading strategies apparently exacerbated the situation. We saw the worst Christmas Eve decline on record, and it was followed up with the largest one-day point gain in the history of the Dow Industrials.
U.S. stocks plummeted over 9% in December and ended down 14% for the quarter. The daily volatility during the quarter was nothing short of remarkable. Market leverage and quantitative trading strategies apparently exacerbated the situation. We saw the worst Christmas Eve decline on record, and it was followed up with the largest one-day point gain in the history of the Dow Industrials.
After a rocky start to the fourth quarter, global stock markets stabilized in November. U.S. equities advanced by 2%, while foreign shares returned about 1% for the month. Although domestic stocks remain in positive territory year-to-date, investments in foreign companies have experienced double-digit losses.
October was a rough month for investors. Both U.S. and foreign stocks experienced sharp declines, pulling global stock markets down more than 7% for the month.The technology heavy Nasdaq Composite’s decline of more than 9% in October was its worst monthly performance since 2008.
About one in five members of the American Chamber of Commerce in Shanghai say they have been pressured to transfer technology.
Although September was a relatively quiet month for stock investors, third quarter returns were strong. Domestic equities surged more than 7% for the quarter, far outpacing foreign markets. For the past 9 months, U.S. stocks are sporting double-digit returns, while foreign stocks find themselves in negative territory.
Former Federal Reserve Chairman Ben Bernanke is not happy with the recent corporate tax cuts and increased government spending … otherwise referred to as fiscal stimulus.
Brookings scholars Ron Haskins and Isabel Sawhill define the “success sequence” as getting educated, working, and then marrying before having children … in that order. National Longitudinal Survey of Youth sociologists W. Bradford Wilcox and Wendy Wang recently tested the three success sequence among millennials (ages 28 to 34).
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