Market Briefing
News, analysis and comment
By Logan Robertson and Thomas J. Connelly, CFA, CFP®
March 23, 2020
The US equities market sinks lower; the S&P 500 index now sits more than 30% down year-to-date. Other major country indices are performing similarly. Yields on US 10-Year Treasuries have fallen nearly 120 basis points over the same period, currently at 0.717%.
The scramble away from Emerging bonds and into US dollars continues, pushing yields on the bonds upward. Gold rallied an impressive 4% today, barely turning positive on the year. Private Lending and Reinsurance remain slightly positive, but future returns and perhaps distributions from private lending will be adversely affected by the slowing economy.
The Federal Reserve is acting aggressively to ensure liquidity remains ample in many critical funding markets. In addition to purchasing Treasury bills/coupons and agency MBS, the Fed is now extending purchases to short-dated muni bonds and commercial paper. In essence, the Fed is printing money to fund the operation of local governments and corporations. The program will continue for one year, surely sending the Fed balance sheet to highs never before seen.
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.
