The Independent Market Observer

What Can Investors Do in a Down Market?

May 13, 2022

Much of the discussion around the market decline so far this year has been, first, why is it happening and, second, how far will it go? Most people are looking at the market as an independent entity, trying to second-guess how it will act in the future. Most people will, inevitably, be wrong.

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Monthly Market Risk Update: May 2022

May 12, 2022

My colleague Sam Millette, manager, fixed income on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Market Risk Update. Thanks for the assist, Sam!

Markets dropped in April, reversing the gains from March. The S&P 500 lost 8.72 percent during the month, while the Dow Jones Industrial Average (DJIA) dropped 4.82 percent. The Nasdaq Composite saw the largest decline during the month, as the technology-heavy index fell 13.24 percent in April. The sell-off in April is a reminder that risks remain, and they should be monitored going forward.

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Economic Risk Factor Update: May 2022

May 11, 2022

My colleague Sam Millette, manager, fixed income on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam!

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Worries Rise as Markets Drop

May 10, 2022

Yesterday was another bad down day in the markets. Not only that, but other assets are getting hit as well, with bitcoin getting hit even more than the general financial markets. As worries rise, when will the bleeding stop? 

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Monday Update: Hiring Remained Strong in April

May 9, 2022

There were several important economic data releases last week, with reports covering business confidence, international trade, the results from the Fed’s May meeting, and the April employment report. The jobs report was a highlight, as it showed continued strong hiring in April despite the headwinds created by rising labor costs and tighter monetary policy. This will be another busy week of updates, with a focus on the April inflation reports.

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Stock Market Continues to Slide

May 6, 2022

Yesterday saw another significant drop in stock markets, more than reversing the bounce we saw the prior day. Up, down, up, down, but largely down—it looks like the market is headed down indefinitely.

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What You Need to Know: Is Renewed Growth Ahead?

May 5, 2022

One of the key things I do as an analyst is figure out what can be safely ignored. In today’s environment, with so many “different this time” events going on—the pandemic, the Ukraine war, and the 40-year high in inflation—what can we safely disregard? Finding the right answer is not as simple as it was a couple of years ago.

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Looking Back at the Markets in April and Ahead to May 2022

May 4, 2022

April was a hard month for the markets. For the month, U.S. markets were down between 5 percent for the Dow and 14 percent for the Nasdaq, and international markets fell between 5 percent and 7 percent. Fixed income was also down for the month—there was truly nowhere to hide.

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Market Thoughts for May 2022 [Video]

May 3, 2022

April was one of the worst months for the markets since the start of the pandemic.U.S. markets were down between 5 percent for the Dow and 14 percent for the Nasdaq, while international markets fell between 5 percent and 7 percent. Rising interest rates drove the declines, with the Fed signaling it intended to keep tightening monetary policy. Still, the U.S. economic news was positive. Hiring remained strong, supporting consumer confidence, and business confidence and investment remained healthy.

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Monday Update: Economy Contracts in the First Quarter

May 2, 2022

Last week was a busy period for economic updates, with several important data releases that covered wide areas of the economy. The advanced estimate for first-quarter GDP growth showed that the economy surprisingly contracted to start the year, but the underlying data had some positive signs for growth ahead. This will be another busy week of updates, with highlights including business confidence, international trade, the results from the Fed’s May meeting, and the April employment report.

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