July 2016 Commentary

There were seven record highs for the S&P 500 during July, a month that saw US Treasury 10-year yields close at 1.46% (vs. 2.25% at December 31, 2015 and 1.47% a month ago), the VIX at 11.97 (vs. its month earlier level of 26.72) and, since July 8th, cyclical assets outperforming defensives. Markets don’t seem to have a care in the world; each day investors succumb to the allure of TINA (“there is no alternative” to stocks). Not even oil’s threat to break its 200 day moving average (at $41.20) to the downside has interrupted the music. During the month, all North American equity indices generated solid returns, with former “FANG” stocks enabling NASDAQ to post the best returns. Both of our funds generated profits during July and marked their four year track record...

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Emma Querengesser