This newsletter explores market volatility including stock ‘air pockets’, market expectations, inflation, and GDP with perspective from global markets. Increased Volatility in the Markets Markets saw increased volatility following first a disappointing jobs report and then a higher than expected level of inflation in the CPI release. During the week of May 10-14, the S&P500…
With COVID-19 vaccinations underway and a new stimulus/relief package in the works, investors have begun to worry about inflation. The concern has manifested itself in a recent rise in longer-dated bond yields. Higher Rates Reduce Asset Value There is some math involved but the simple short of it is that higher rates reduce the value of…
Contrarian investors lead lonely lives. There are many flavors of investors. Some follow momentum. Some are broad asset allocators. Some are short-term traders. There are a lot of ways to make money in the market. There is no one answer. Even further, different strategies can be effective at different times. Contrarians Take Positions Against Prevailing Conventional…
As we say good-bye to 2020, despite all the turmoil and pain, the markets proved to be resilient beyond most people’s imagination. Below, you’ll find the January 2021 BrokerageSelect Newsletter which summarizes current market trends while highlighting the kind of innovative out-of-the-box thinking that Pendragon Capital Management specializes in.
As year-end 2020 approaches, here are investment observations to consider. This is a good time of year to assess your financial goals, investments, and personal situations. In addition, it’s an ideal time to speak with your financial advisor to see what changes might be needed to keep your finances on track. Below, you’ll find the…
Have you considered the role of bonds in your portfolio? The BrokerageSelect Newsletter summarizes current market trends while highlighting the kind of innovative out-of-the-box thinking that Pendragon Capital Management specializes in. This issue will explore bonds and rethinking the role they have traditionally played in a portfolio.
After one of the strongest Augusts on record, investors continue to shake their collective heads. How can a market be doing so well when the COVID economy is in recession? As we discussed in our previous letters, the Federal Reserve’s monetary support and the fiscal stimulus provided by the Congress and Administration have generated the…
Twice in the past month, the bears took the S&P500 down to the 200-day moving average but both times failed to break the market lower. The buyers came in and bounced the S&P500 back up to 3130. This is about where stocks are now.
The stock market had a big up week as an economy that is re-opening, hopes for a vaccine, and the fear of missing the rebound motivated investors to buy. While the initial rally off the March low was led by social media stocks, the FAANGs, and technology, the past two weeks have seen a broadening…
The stock market is caught in a tug-of-war between very bad economic data and a tremendous amount of fiscal and monetary stimulus. At his recent press conference, Federal Reserve Chairman Powell reiterated his “whatever it takes” position.
