Interest rates remain the primary focus of investors. The rapid increase in rates over the past six months reached a crescendo last week with the 10-Year Treasury yield breaching 1.6%. To put this in perspective, that benchmark rate has risen nearly 200% since August 2020. Most of the jump has occurred since the beginning of… Read the full article.
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Is the Continued Rise in Interest Rates Really Cause for Concern?: Market Commentary from Cabana’s CEO – February 23, 2021
The broad-based U.S. equity indices (S&P 500) sold off again yesterday, which made five consecutive down days (note that we made up for some of these losses at market close today). The reason for the recent drops given by most analysts, is the continuing unabated rise in interest rates. The 10-year Treasury yield has now… Read the full article.
From tech titans to the daily news, there is a lot of buzz about Bitcoin. While the opinions on its utility, viability and value are varied, it is important to understand some basics about Bitcoin Decentralized. Cryptocurrency is decentralized digital money that is based on blockchain technology. Decentralized means that there is no central governing… Read the full article.
Technology Moves Forward as Bond Yields Surge: Market Commentary from Cabana’s CEO – February 16, 2021
U.S. and international equity markets continue to move higher, albeit more slowly. Despite a slow rotation into cyclicals, which has been occurring over the past several months, technology continues to move forward. This could be evidence that investors aren’t completely convinced we are on the brink of reopening our society, or that investors truly believe… Read the full article.
Equity Markets Start To Reflect What Really Matters: Market Commentary from Cabana’s CEO – February 8, 2021
World equity markets have quickly shrugged off the January swoon, as well as the perceived GameStop/Robinhood threat to the workings of financial markets. As we have pointed out many times, the things that really matter transcend opinion – and the vast majority of everything else is noise. So, what is it that really matters? Interest… Read the full article.
What’s the Deal with GameStop and How is it Impacting the Market?: Market Commentary from Cabana’s CEO – February 2, 2021
Equity markets dropped across the board last week. The pullback erased all gains seen earlier in January and resulted in a monthly loss of more than 1% for the S&P 500. We recently discussed the possibility of earnings not meeting the lofty expectation set by the markets over the past few months. The move straight… Read the full article.
Q4 Earnings Reports… Where the Rubber Meets the Road: Market Commentary from Cabana’s CEO – January 26, 2021
We are about to see if the equity market’s fabulous run since the beginning of November is supported by reality. Earnings drive price and price tends to forecast earnings. Beginning tomorrow (and over the next few days) we are going to hear from some of the nation’s bellwether companies about how well they did during… Read the full article.
Markets resumed their uptrend today after Friday’s selling and the Martin Luther King Jr. holiday. The broad indices recovered last week’s losses and are again positive for the month. January is considered a good barometer for the rest of the year. If markets are positive to start the year, they usually end the year positive as… Read the full article.
Broad Market Indices Reach All-Time Highs Again, This Time Paired with a Stronger Economy: Market Commentary from Cabana’s CEO – January 12, 2021
Equity markets have begun the year in positive territory, continuing the move that started in early November. This is the result of investors projecting additional stimulus on the back of a Biden presidency and a Democrat-controlled Congress. We are seeing money move into cyclicals like transportation, industrials, and energy. This has occurred at the expense of… Read the full article.
I hope all our investment and advisor partners had a wonderful holiday week spent with family and loved ones. It is all that really matters at the end of the day. I also hope each of you are healthy, as are as those that you care about. That cannot be emphasized enough these days. U.S…. Read the full article.
Well… 2020 just can’t end soon enough for me. COVID just keeps coming – and in novel ways. We are now faced with the emergence of a new and particularly contagious strain that appeared in the UK over the past several weeks. The situation is bad enough that the entire country has shut down and travel… Read the full article.
Patience is a Virtue… and Exactly What Investors Need: Market Commentary from Cabana’s CEO – December 15, 2020
U.S. equity markets continue to digest the sudden large gains seen in November. Major indices are essentially flat since December 1 and SPY has experienced four straight down days after hitting record highs on December 6. This makes for the longest consecutive losing streak in almost three months. However, all is not bad. Churning for… Read the full article.
U.S. equity markets continue to make (or hold near) all-time highs. Despite COVID-19 again running out of control throughout the country, investors look ahead to several proven vaccines in the process of being approved and distributed. It appears that will happen within a matter of weeks, if not days. We also anticipate some type of… Read the full article.
We just closed out an epic monthly rally in the broad U.S. equity indices. The Dow, S&P 500 and Nasdaq were all up more than 10% for the month despite yesterday’s pullback. On November 15, stocks broke out of a two-month extremely volatile trading range. The previous high reached in early September by the S&P… Read the full article.
Sector Rotation Proves Transition to Bullish Conditions: Market Commentary from Cabana’s CEO – November 23, 2020
The past week has seen continued rotation into cyclical assets like industrials, materials, consumer discretionary, financials, and even beaten down energy. We have been watching for this since August when we first pointed out the divergence between big tech and everything else. We pointed out then that we would eventually need to see other sectors… Read the full article.
The Cost of Rules-Based Reallocation During Periods of Market Volatility: Market Commentary from Cabana’s CEO – November 16, 2020
For a change this week, I’d like to provide some insight into what it means (good and bad) to have a rules-based process. There is a chart of the S&P 500 over the past three years for reference on Page 2 of this commentary. My idea for this week’s commentary comes as a result of… Read the full article.
There is Hope… and it is Showing up in the Stock Market: Market Commentary from Cabana’s CEO – November 9, 2020
Each week when I sit down to write our weekly commentary, I seem to exceed my previous week’s amazement at the world around us. We elected a new president (sort of). A Biden victory was expected to be bad for equity markets according to the majority of experts. So, what happened as soon as it… Read the full article.
Volatility Continues in the Days Leading up to the Election: Market Commentary from Cabana’s CEO – November 2, 2020
Since October 12, broad equity markets (SPY) are down 7% and have broken through important short-term technical support and the 50-day moving average, just below 340. A test of the all-important 200-day moving average at 312 appears inevitable. Big tech leaders like Amazon and Apple have led the selling. It is generally cause for concern when… Read the full article.
Is Today’s Stock Market Just a Reflection of Ourselves?: Market Commentary from Cabana’s CEO – October 28, 2020
On October 12, the broad U.S. equity market (SPY) came within a whisker of its all-time high reached less than six weeks earlier. The positive stock performance was based on hopes for improving corporate earnings going forward, an additional stimulus package, and Covid-19 having taken a backseat in our country’s collective conscious. Since then, we have… Read the full article.
Volatility continues and all major U.S. indices have dropped back to their respective 50-day moving averages. This follows a week of steady selling. The S&P 500 has dropped nearly 4% in that time. Third quarter earnings season is in full swing. As we have pointed out, companies across the board are doing better than was… Read the full article.