February 9th, 2024
Oil prices are climbing as Israel rejected a ceasefire agreement with Hamas, while tensions in the Red Sea continue as the US fights off Houthi rebel attacks.
*We have also uploaded our latest monthly research and commentary discussing key updates on the economy and markets, new highs in the equity markets, treasury yields and more…. CLICK HERE to read now
Annualized Return: The rate at which an investment grows each year over the period to arrive at the final valuation.
Bear Market: A decline of at least 20% from the market’s high point to its low.
Beta: A measure of how an individual asset moves when the overall stock market increases or decreases.
Correlation: A measure of the extent to which two variables are related.
Dividend Yield: The dividend yield or dividend-price ratio of a share is the dividend per share, divided by the price per share. It is also a company’s total annual dividend payments divided by its market capitalization, assuming the number of shares is constant.
Developed Markets: A country that is most developed in terms of its economy and capital markets. The country must be high income, but this also includes openness to foreign ownership, ease of capital movement, and efficiency of market institutions.
Emerging Markets: A country that has some characteristics of a developed market but does not fully meet its standards. This includes markets that may become developed markets in the future or were in the past.
Growth Factor Stocks: Growth stocks are companies expected to grow sales and earnings at a faster rate than the market average.
Large Cap Stocks: Shares of publicly traded corporations with a market capitalization of $10 billion or more.
LTM: An acronym for “Last Twelve Months” or the past one year.
NTM: An acronym for “Next Twelve Months” or the next one year.
Price Return: The rate of return on an investment portfolio, where the return measure takes into account only the capital appreciation of the portfolio, not including income generated in the form of interest or dividends.
Total Return: Return on a portfolio of investments including capital appreciation and income received on the portfolio.
Small Cap Stocks: Small-cap stocks are shares of companies with a market capitalization of less than $2 billion.
Standard Deviation: In statistics, the standard deviation is a measure of the amount of variation or dispersion of a set of values. A low standard deviation indicates the values tend to be close to the historical average of the data set, while a high standard deviation indicates the current value is outside of the historical average range.
Value Factor Stocks: Stocks that are inexpensive relative to the broad market based on measures of fundamental value (e.g., price to earnings or price to book).
DISCLAIMER: Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains.
Disclaimer: None of the content published on T2 Markets Research constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. None of the information providers or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter.
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Global equity markets remained remarkably resilient last week despite another sharp rise in interest rates, elevated energy prices, and the first rate hike from the Federal Reserve in more than three years. U.S. equities initially came under pressure following Wednesdays widely anticipated 25 basis point increase in the Fed Funds target rate to 3.75%-4%, but the selloff was relatively short-lived, with most major indices recovering from their knee-jerk response to the rate announcement.
Global equity markets were under pressure last week with rising energy prices, escalating U.S.-Iran hostilities, and another leg higher in Treasury yields. U.S. equities gave back much of the gains from the prior week, with the S&P 500, Nasdaq 100, and Russell 2000 all slipping a little Tuesday through Thursday before regaining some ground on Friday. The selloff was relatively orderly, with the market continuing to focus on whether the increase in energy prices represents a temporary
geopolitical shock or the beginning of a more persistent inflation problem.
Global equity markets were quietly choppy this week as investors grappled with a rise in global bond yields, a renewed escalation in U.S.-Iranian hostilities and a shifting outlook for Fed policy.U.S. equities came under pressure early in the week as the global bond selloff and higher energy prices challenged elevated valuations, although stocks recovered as the week progressed, with theS&P 500, Nasdaq 100, and Russell 2000 posting modest gains of under a half a percent.
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Growth vs Value Factor — one of the charts from our research.
