The Rich Got $17 Trillion Richer

Despite the many negative headlines, 2012 was a good year for markets. Listed below is a rough snapshot of total returns in USD – most asset classes returned double-digits. 2012 was a year to look through pessimism – how did your PA do? I would estimate that Global Financial Wealth rose by $17,500,000,000,000 to $162 trillion (I ignore […]

Lower Correlations: Only an Interlude

The developments in markets have been encouraging lately: volatility is down, and so are correlations. In fact, the first is largely a direct cause of the second, as RGE explained here and here several months ago when the opposite phenomenon was occurring (in line with an argument put forth by Harry Markowitz that ‘beta’ swamps ‘alpha’ when the former is large).

U.S. Market Snapshot: Stocks Rise on Better than Forecasted Consumer Sentiment and Home Prices

The Conference Board reported that consumer confidence rose to 53.5 in August from a revised 51 in the prior month, beating economists’ expectations of 50.7. The S&P/Case-Shiller home prices also rose 0.28% m/m on a seasonally adjusted basis in August, more than economists surveyed by Bloomberg expected (expectations were for an increase of 0.2% m/m SA). The release of the Fed meeting initially sent markets lower however they later pared back their losses to close slightly up. (See RGE critical issue: U.S. Home Prices: Any Signs of an Impending Double Dip?).

European Market Snapshot: Most Markets Close Higher on Better Than Forecasted U.S. Consumer Sentiment and Home Prices

European markets opened significantly lower and traded around that range before quickly paring back their earlier losses after U.S. consumer sentiment rose more than forecasted.

The Conference Board reported that consumer confidence rose to 53.5 in August from a revised 51 in the prior month, beating economists’ expectations of 50.7. The S&P/Case-Shiller home prices also rose 0.28 % m/m on a seasonal adjusted basis in August, more than economists surveyed by Bloomberg expected (expectations were for an increase of 0.2% m/m SA). 

Asian Market Snapshot: Stocks Fall on Anticipation of Today’s U.S. Economic Data

Yesterday, after Asian markets closed, the Dallas Fed manufacturing index fell 13.5% in August, worse than the 10% decline economists expected. Personal income growth was 0.2% m/m lower than the 0.3% growth economists forecasted. Personal spending, however, grew at 0.4% m/m in July versus expectations of 0.3%. Consequently, today investors are speculating on more evidence of further weakness. Economists in the Bloomberg survey expect consumer confidence to remain slightly flat at 50.7 from 50.4 in the prior month. Markets opened and traded lower all throughout the day.  

U.S. Market Snapshot: Stocks Fall on Smaller Than Expected Personal Income Growth

U.S. equity markets opened lower and traded lower all throughout the trading day on concern the recovery may slow further. The Dallas Fed manufacturing index fell 13.5% in August, worse than the 10% decline economists expected. Personal income growth was 0.2% m/m, lower than the 0.3% growth economists forecasted. Personal spending, however, grew at 0.4% m/m in July versus expectations of 0.3%. 

The Dow fell 1.4% to 10010 with all sectors in the red. Consumer services (down 1.54%), industrials (down 1.79%) and financials (down 2.15%) led the broader decline.

The S&P 500 declined 1.47% to 1049 with all ten sectors in negative territory. Consumer services (down 1.57%), industrials (down 1.63%), and financials (down 2.2%) led the broader advance.

European Market Snapshot: Most Markets Close Lower as Declines in Germany and France Offset Gains in Switzerland and Greece

European markets opened higher and traded in positive territory for most of the trading day before declining to their intraday lows after the Dallas Fed manufacturing index declined more than expected. The Dallas Fed manufacturing index fell 13.5% in August, worse than the 10% decline economists expected. Personal income growth was 0.2% m/m while personal spending growth was 0.4% m/m in July versus expectations of 0.3% for both. Eurozone business climate was slightly weaker than expected while consumer confidence, economic confidence and services confidence were slightly better.

The Stoxx Europe 600 declined 0.03% to 251 led by industrials (down 0.5%) and telecom (down 0.49%).

1 2 3 18