After a brutal first half of the year, small cap stocks began their recovery in mid-June and this continued in July and August. Not coincidentally, the credit market also showed substantial improvement.
Last week the Federal Reserve officially announced what we already assumed; their desire to stoke inflation over 2%.
The Federal Reserve shocked markets on March 23rd when it announced extraordinary measures to ensure liquidity flows throughout financial markets.
As the economy slowly begins to emerge from the pandemic, investors may naturally have concerns regarding the long term economic impact.
After a share price surge, Hertz Corporation petitioned for and initially received bankruptcy court approval to raise money via a common stock offering. This was a surprising turn of events for a company that recently filed for Chapter 11 protection.
Small value equities are valued -38% below their 10-year average, while growth, defensive, low volatility, and ESG factors exceed the bubble threshold of +30%. This dispersion has reached a 20-year high, in line with the dot-com bubble.
April 30th will see record fallen angel bonds move out of investment grade indices, more than the entirety of 2009. In response, the Fed has expanded its credit facilities to purchase fallen angels and HY ETFs.
The information on this page is provided for the reader's information only. Please note the date of each article attached, as the information has not been updated for any information in such articles that might have changed. The reader should not rely on such information for any purpose. The information on this page does not constitute the provision of investment advice. In addition, it does not convey an offer of any type and is not intended to be, and should not be construed as, an offer to sell, or the solicitation of an offer to buy, any securities or other financial products. No assurances can be made that any aims, assumptions, expectations, strategies, and/or goals expressed or implied above were or will be realized or that the activities or any performance described did or will continue at all or in the same manner as at the time of the articles.
