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The May Narrative  

It was a memorable May to say the least.  Prospect of trade wars, European political theater, North Korean drama, and moderately positive global economic indicators ultimately netted positive results in the U.S. equity market led by growth stocks and small caps.  The S&P 500 climbed 2%, its best month since January, while small caps rallied close to 6%, their best month since September of last year. Europe, Pacific, and emerging markets were all down in May, pressured ...

The March Narrative  

March marked the nine-year anniversary of the equity bull market as investors weighed the balance of bullish arguments (economy, earnings) and bearish arguments (tariffs, interest rates, valuations) against one another.  The month of March delivered the first consecutive monthly decline (-2.5%) in the S&P 500 since October 2016 and snapped a nine-quarter winning streak. Key market events included POTUS tariff proposals, Amazon business scrutiny, Facebook privacy breaches, and a 0.25% Fed rate hike.   Value and small cap-oriented ...

The February Narrative

Just as Cal Ripken Jr. brought an end to Lou Gehrig’s consecutive game streak in 1998, equity market volatility in early February brought an end to a wide array of low volatility streaks and records.  U.S. equity markets experienced their first correction since 2015 while interest rates moved higher across the curve.  Most U.S. equity indices fell approx. 3% while foreign stocks fell closer to 6%.  REITs, telecommunication, and utilities stocks have felt the pinch of rising rates ...

The December Narrative

December saw global equity markets continue their unprecedented streak of consecutive positive months, closing out at record highs in an 8th consecutive year of the bull market.  During the month, the DJIA added to its tally of over 70 record closes in 2017 – the most it’s had since 1995.  Synchronized global growth coupled with benign inflation, accommodative policy, and strong corporate profits pushed stocks, bonds, and commodities higher.  A significant influence during the month was the tax ...

This holiday season we’re excited to grant a Christmas Wish through STAR 102.5’s Christmas Wish, on behalf of Silvercap and our clients.   There are so many incredible people in our community who are making a difference; it gives us great joy to have the ability to assist those who are helping others.  Please take a moment to listen to the below clip of Ken & Colleen interviewing Bobbi, who this Christmas is making a difference in the lives of Iowa Veterans.

We are ...

Global growth estimates continued to grind higher in November and U.S. tax reform bills in Congress provided an additional tailwind to U.S. equity markets.  Valuations and geopolitics remain concerning and while the tax cut induced rally may have been a little optimistic, the cyclical picture remains favorable from both economic and policy perspectives.

Market Anecdotes

• The House and Senate passed tax reform bills, projected to boost GDP by 0.8% over the ten-year budget window.  The bill is front end loaded with ...

Despite a triple dose of hurricanes, tension with North Korea, and a month known to be challenging and volatile, the S&P 500 delivered its biggest September since 2013 within one of the narrowest trading bands on record.  Not to be left out, the NASDAQ and Russell 2000 hit all-time highs and the DJIA fell only 0.06% short.  European equity markets led the way while emerging markets generated their first negative month in 2017.  With constructive economic reports prevailing both here ...

Positive corporate earnings and economic data propelled global equity markets to an eighth consecutive positive month.  Emerging and developed international markets outperformed the U.S. aided by a weaker U.S. dollar and a spike in commodity prices (excluding oil).  Major news items included tension with North Korea, Hurricane Harvey, the Jackson Hole Economic Symposium, and the political climate in D.C. (staff purges, Charlottesville).  Large multinational stocks outperformed small cap stocks again and by a wide margin due to encouraging non-U.S. economic ...

June put a bow on a very friendly first half 2017 for global equity investors but a quiet month it was not.  Comey congressional testimony, a Fed rate hike, closely watched elections in France and the U.K., and ample central bank narratives dominated the headlines.  Markets absorbed the information in step and, as opposed to recent years, we enter the second half of the year without a tangible dark shadow akin to the Greek debt crises or Brexit weighing heavily ...