Ideas

January 16, 2020

The small cap year-end rally included a broader set of stocks, which stands in contrast to 2019 during which just 5% of the Russell 2000 accounted for 44% of the index’s performance. Listen to Portfolio Manager Chris Colarik's small cap review and outlook.

January 16, 2020

The fourth quarter surge and 2019 market gains were powered by a handful of the largest stocks. Hear about concentration risk and the 2020 outlook from Portfolio Manager Val de Vassal in his large cap Q4 and year-end review.

January 16, 2020

Market concentration grew along with related risks in 2019 as the largest several stocks drove index performance. Hear Portfolio Manager Val de Vassal’s fourth quarter large cap review and outlook.

January 10, 2020

As the largest growth-oriented stocks continued to outperform, monthly mean reversion for large caps was GIM’s best performing quantitative factor in 2019, delivering its highest return since 2001. The upturn in mean reversion may suggest investors relied on short-term trading driven by momentum and other factors.

January 3, 2020

From 1928 to 2016, a $1,000 investment in the S&P 500 Index at the start of the election year appreciated over the following four years in 20 of the last 23 elections. (Sources: NYU Stern, Annual Returns on Stock, T.Bonds and T.Bills: 1928 - Current, Damodoran)

December 27, 2019

The weighting of the five largest companies in the Russell 1000 Growth Index reached 29.3 percent in November, the highest level experienced since the May 2001 peak seen during the dot.com bust. Whether these top five stocks now will follow a historical trend toward underperformance is something to watch closely in 2020 and beyond.

December 20, 2019

Sweden's decision to end its years-long negative interest rate policy move begs the question of what will happen with global rates elsewhere. If other central banks follow suit the markets may have seen the peak of negative yielding sovereign debt in August. Investors need to examine broader rate sensitivities in their portfolios in this changing environment.

December 15, 2019

As the United States approaches the end of its first decade in recorded history without a recession, a look at the data shows that absence of a recession doesn’t assure higher annualized stock returns for the period. While the next recession will happen at some point, the U.S. expansion can seem relatively young when compared to Australia, which has not experienced a recession in 28 years.

November 21, 2019

Derivatives Portfolio Manager Sean Heron shares an update on Glenmede's Secured Options Strategy and looks at market condition. With the S&P 500 at an all-time high, the backdrop for options has become more defensive. Investors are asking why options are expensive when the VIX index has dropped to such low levels. Sean offers three explanations for understanding recent options pricing.

November 15, 2019

As earnings season draws to a close, earnings appear to be driving market performance more than usual in the fourth quarter with 74% of S&P 500 Index stocks beating estimates and global macro concerns abating somewhat.

November 8, 2019

Since late August, the U.S. Treasury yield curve has steepened by 30 basis points, triggering a rotational shift with cyclical stocks outperforming defensive stocks. The shift reverses an 18-month trend, based on comparing the relative performance of financials vs. utilities as sector proxies.

Sean Heron, CFA, discusses Glenmede’s Secured Options Strategy and provides an overview of the chart of the month.

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