Monthly Archives: February 2020

Week 08 of 2020, Warning Signs?

Ciato Final Version Overview 0820

It’s said that you shouldn’t look a gift horse in the mouth, but we’d argue that it doesn’t hurt to check it for cavities occasionally. The stock market has certainly played the role of gift horse lately, returning over 4% so far this year and an average of 14% since early October, including reaching new all-time high last Wednesday. We have no objections to this latest rally. The economic backdrop, monetary policy settings, and financial conditions are all supportive of further longevity for this bull market.

Week 07 of 2020, Will the Coronavirus Infect the Market?

Table of return Ciato Final 0720

Coronavirus concerns have sparked a few bouts of daily market volatility, but U.S. equities have largely taken the developing outbreak in stride, rising 4.4% so far, this year. Travel bans, shuttered factories and businesses in China, along with the rising number of confirmed cases around the world, naturally evoke an emotional response as well as questions around the potential implications for the investment outlook