Category Archives: Uncategorized

Market Recap

Posted on August 31, 2018 by Gemmer Asset

  First Turkey, Now Argentina   The emerging markets (EM) haven’t been in the news for what, a couple weeks? Dire headlines about Turkey’s problems were all the rage for a while. This week the spotlight, or more accurately the bulls-eye, shifted to Argentina.   By way of background, Argentina has a colorful history when it comes to debt repayments. Specifically, they have a history of not paying. Since independence Argentina has managed to default…
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The Problem with Leveraged ETFs

Posted on August 30, 2018 by Gemmer Asset

“When you combine ignorance and leverage, you get some pretty interesting results.”   -Warren Buffett   With the proliferation of ETFs over the past 20 years just about every asset class you can think of has at least a handful of ETFs to choose from. Because of this, providers have had to get creative in bringing “unique” products to market. Some of the more interesting (trying to be kind here) recent offerings have included (yes…
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Market Update

Posted on March 23, 2018 by Gemmer Asset

Market Recap Tough week for the equity markets. For the week the S&P lost -6.0% while small-caps were hit for -4.8%. The international markets were down between -3.6% and -4.7%, less than U.S. large-caps due in part to a weak dollar. Worries about trade wars and the Fed conspired to drive prices lower, and significant cracks in certain social media stocks didn’t help confidence (Facebook lost -13.9% this week). But despite the roughly 1,150 point…
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Market Update

Posted on March 16, 2018 by Gemmer Asset

  The Inflation Trade Takes a Pause   One of the big market stories this year has been the rise in bond yields. This has led to modest losses for government bonds and is one of the reasons the equity market corrected in February. The bond narrative has gone something like this:   – Growth is going to boom because of the tax cuts…   – …which means faster inflation given that unemployment is down…
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Market Update

Posted on February 9, 2018 by Gemmer Asset

  Now that was a wild week. Coming into Friday the S&P 500 had closed down seven of the previous nine trading sessions, including drops of 1.1%, 2.1%, 3.8%, and 4.1%. This last selloff was the biggest one-day decline since 2011. We are now officially in ‘correction’ territory for the first time in two years. From the high the S&P was down -11.8% at Friday’s low before the markets bounced, while the EAFE and emerging…
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Market Update

Posted on February 2, 2018 by Gemmer Asset

  After a torrid start to the year, global stock markets corrected this week. The immediate catalyst was rising bond yields around the world. For the week the S&P 500 dipped -3.9% while small-cap stocks were hit for -3.8%. The developed EAFE declined in line with the U.S. indexes while emerging equities fell -5.8%.   The Fed met this week and left the Fed Funds rate unchanged. However, this didn’t prevent longer-term bond yields from…
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Market Update

Posted on January 12, 2018 by Gemmer Asset

  The equity markets have started off 2018 on the front foot. Gains have been broad based with all the major asset classes advancing. Only government bonds have struggled to gain traction. So far in 2018 the S&P is up +4.2% while small-cap equities are up +3.6%. International equities are doing well with the developed EAFE up +4.5% and emerging equities up +5.1%. As we talk about in our quarterly letter that will be published…
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Market Update

Posted on October 20, 2017 by Gemmer Asset

  A 30-Year Anniversary   Has it really been 30 years??!! The biggest percentage decline in the Dow ever is hard to forget. After all, you don’t often see almost a quarter of an index’s value wiped out in a single day. Some speculative biotech stock maybe, but the Dow??     But contrary to almost everyone’s expectation, a global depression didn’t come hot on the heels of the crash. Actually, the bull market ran…
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Market Update

Posted on January 27, 2017 by Gemmer Asset

  Round numbers are a funny thing.  Dow 20,000 gets a lot of attention, but it’s just another number.  Thresholds such as this do mark progress, to some extent.  Just consider other round numbers for the Dow:   Dow 1,000      –           November 14, 1972 Dow 5,000      –           November 21, 1995 Dow 10,000    –           March 29, 1999 Dow 15,000    –           May 7, 2013   We had that Dow 10,000 hanging around for a long time!!  …
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Market Update

Posted on November 18, 2016 by Gemmer Asset

  The last couple weeks will almost certainly go down in the history books for a number of reasons.  The election appears to mark a sea change in a number of political and economic areas, and the market trends since November 8th partially reflect this.  Just take a look at the post-election performance for a number of asset classes. Basically, interest rates shot higher right after the election and anything interest sensitive was hit hard,…
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