Market Briefing

News, analysis and commentary

By Logan Robertson and Thomas J. Connelly, CFA, CFP®

April 21, 2020

World equity markets dipped lower today; the S&P 500 was down -3.0%, driven mostly by Large/Growth companies and the Technology sector. Foreign markets fared slightly better: Developed and Emerging Markets dropped -2.0% and -2.8%, respectively. The VIX crept up 4.2% today to 45.65.

US 10Y Treasury yields are down -13.02% this week to 0.571%. Investible-Grade and High-Yield Corporate yields are down -37.2% and -30.4% from a month ago, respectively. This may be a signal of investor confidence in the Fed and Treasury’s joint effort to keep businesses afloat during this period of external shock.

Oil was the big story this week, as yesterday saw unprecedented pricing in the front month futures contract. The WTI Crude Oil May contract (settlement date was today) bottomed out at -$40.32 yesterday. The June contract dropped -36.7% today to $13.49. The demand for oil has seen a massive drop over the past several months, and supply is overflowing. Suppliers are desperate to push oil out, and it seem buyers have reached the limit of what they can absorb right now. Only time will tell if we will see negative prices again month.

Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Versant Capital Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this article will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this article serves as the receipt of, or as a substitute for, personalized investment advice from Versant Capital Management, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Versant Capital Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the article content should be construed as legal or accounting advice. If you are a Versant Capital Management, Inc. client, please remember to contact Versant Capital Management, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. A copy of the Versant Capital Management, Inc.’s current written disclosure statement discussing our advisory services and fees is available upon request.