Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

1st Quarter | 2021

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Last week, gold prices continued moving up off the “double bottom” pattern identified in last week’s article. They broke above the resistance trend line that began at the start of 2021 and then approached the 50-day moving average before closing the week at $1,744.80 per ounce.

U.S. equity markets posted gains in all three indexes last week. The NASDAQ Composite gained 3.12%, the S&P 500 gained 2.71%, and the Dow Jones Industrial Average gained 1.95%.

Last week, the gold spot price was up 0.84% and the U.S. Dollar Index was down 0.82%.

The markets were up last week as we closed out the first quarter of the year. The tech-dominated NASDAQ Composite gained 2.60%, the Russell 2000 was up 1.49%, the S&P 500 gained 1.41%, and the Dow Jones Industrial Average rose 0.24%. The 10-year Treasury bond yield rose 5 basis points to 1.72%, though bonds as an asset class were largely up for the week. Spot gold closed at $1,728.87 for the week, down 0.19%.

Last week, the gold spot price was down 0.19% and the U.S. Dollar Index was up 0.18%.

U.S. equity markets posted gains in all three indexes last week. The NASDAQ Composite gained 2.60%, the S&P 500 gained 1.14%, and the Dow Jones Industrial Average gained 0.24%.

Que será, será: Terrible investing advice

Doris Day, a top box-office draw of the 1950s and early ’60s, has always been one of my favorite entertainers.

Gold prices bounced back a second time off the $1,670-per-ounce support level they found three weeks ago.

Major U.S. indexes ended mixed last week. The S&P 500 increased by 1.57%, the Dow Jones Industrial Average was up 1.36%, the NASDAQ Composite was down 0.58%, and the Russell 2000 small-capitalization index lost 2.88%. The 10-year Treasury bond yield fell 4 basis points to 1.68%, as Treasury bonds rose for the week. Last week, spot gold closed at $1,732.52, down 0.73%.

The importance of being “money smart”

Did you know that April is Financial Literacy Month? And that April 10–17, 2021, is Money Smart Week? Financial Literacy Month was designated officially by the United States Senate in 2004 via Resolution 316, during the administration of George W. Bush. (Interestingly, Barbara Bush was passionate about many literacy causes and started the Barbara Bush Foundation for Family Literacy in 1989.)

U.S. equity markets posted gains in two of the three major indexes last week. The S&P 500 gained 1.57%, the Dow Jones Industrial Average gained 1.36%, and the NASDAQ Composite lost 0.58%.

Last week, the gold spot price was down 0.73% and the U.S. Dollar Index was up 0.92%.

Gold prices moved sideways last week, closing at $1,732.30 per ounce.

The major stock market indexes finished lower last week. The Dow Jones Industrial Average lost 0.5%, the S&P 500 Index slipped 0.7%, the NASDAQ Composite fell 0.8%, and the Russell 2000 small-capitalization index tumbled 2.8%. The 10-year Treasury bond yield rose 10 basis points to 1.727%, sending bonds lower for the week despite a late-week rally. Last week, spot gold closed at $1,745.23, up $18.12 per ounce, or 1.1%.

Gold prices continued moving up from the support level at $1,675.00 per ounce, closing the week up at $1,741.70 per ounce.

Why dynamic risk management is right for investor portfolios

Since I began investing in the late 1960s, I have always been in the active investing camp. When I started Flexible Plan Investments, Ltd., in 1981, the only investment services we offered were active management (and that is still true today). I thought an investment manager should be “flexible” rather than locked into a rigid buy-and-hold approach.

U.S. equity markets posted losses in all three indexes last week. The Dow Jones Industrial Average lost 0.46%, the S&P 500 lost 0.77%, and the NASDAQ Composite lost 0.79%. Three of 11 sectors were up last week; Communication Services, which posted the largest gain, was up 0.54%.

Last week, the gold spot price was up 1.05% and the U.S. Dollar Index was up 0.26%.

Major U.S. indexes ended higher last week, with most hitting record highs. The Dow Jones Industrial Average was up 4.07%, the S&P 500 increased by 2.64%, the Russell 2000 small-capitalization index rose 7.32%, and the NASDAQ Composite was up 3.09%. The 10-year Treasury bond yield rose 6 basis points to 1.63%, as Treasury bonds fell for the week. Last week, spot gold closed at $1,727.11, up 1.60%.

Is your portfolio ready for takeoff?

Before the pandemic, we used to invite financial advisers to visit our home office. These visits let us get to know advisers better and allowed advisers to meet the people who make good things happen behind the scenes when they engage us as a third-party money manager for their investor clients.

U.S. equity markets posted gains in all three indexes last week. The Dow Jones Industrial Average gained 4.07%, the NASDAQ Composite gained 3.09%, and the S&P 500 gained 2.64%.

Last week, the gold spot price was up 1.56% and the U.S. Dollar Index was down 0.32%.

Gold prices bounced off the support level at $1,675.00 per ounce, closing the week at $1,719.80 per ounce.

ETF Deathwatch

February ETF Deathwatch contains 320 zombie ETFs and ETNs.

The equity markets were mixed last week. The Dow Jones Industrial Average rose 1.82% and the S&P 500 was up 0.81%. The Russell 2000 small-cap index was down 0.40% for the week, and the tech-dominated NASDAQ Composite fell 2.06%. The 10-year Treasury bond yield rose 16 basis points to 1.57%, as Treasury bonds fell significantly for the week. Spot gold closed at $1,700.64, down 1.93%.

U.S. equity markets posted gains in two of three indexes last week. The Dow Jones Industrial Average gained 1.82%, the S&P 500 gained 0.81%, and the NASDAQ Composite lost 2.06%.

Last week, the gold spot price was down 1.93% and the U.S. Dollar Index was up 1.21%.

In investing, as in life, it’s all relative

A couple of years ago, I was at physical therapy for a back ailment. They had me begin on the treadmill. Trudging along, time seemed to drag. Reaching the end of the exercise interval seemed like a distant goal. As I looked around the room in abject boredom, I noticed a group of therapists chatting away with another client. They were animated. The level of chatter increased. They were so engaged!

Gold prices continued to fall last week, approaching a support level at $1,675.00 per ounce.

The major stock market indexes tumbled last week. The Dow Jones Industrial Average lost 1.8%, the S&P 500 Index declined 2.5%, the NASDAQ Composite fell 4.9%, and the Russell 2000 small-capitalization index dipped 2.9%. The 10-year Treasury bond yield rose 6 basis points to 1.405%, as its price weakened. Spot gold closed the week at $1,734.04, down $50.21 per ounce, or 2.8%.

Visualizing the benefits of risk management

A few weeks ago, I wrote about a financial adviser’s analogy between the strategy in a Kansas City Chiefs 2021 playoff game and investor behavior. In that example, the point was how financial advisers could help their clients with the concept of “behavioral adherence,” or sticking with a well-constructed and risk-managed investment plan even when times get tough.

Last week, the gold spot price was down 2.81% and the U.S. Dollar Index was up 0.57%.

U.S. equity markets posted losses in all three indexes last week. The Dow Jones Industrial Average lost 1.78%, the S&P 500 lost 2.45%, and the NASDAQ Composite lost 4.92%. Energy, up 4.33%, was the only one of the 11 sectors to post a gain for the week.

Gold prices broke down below their 50-day moving average, closing the week at $1,728.80 per ounce.

Why it pays to have a flexible portfolio

When I get the opportunity to share my thoughts in this column, I generally pull from my recent conversations with financial advisers and their clients.

Market Update 2/22/21

Major U.S. indexes ended mostly lower last week, as inflation worries returned and longer-term yields saw their highest levels in almost a year. The Dow Jones Industrial Average was up by 0.1%, the S&P 500 decreased by 0.7%, the Russell 2000 small-capitalization index fell 1.0%, and the NASDAQ Composite was down 1.6%. The 10-year Treasury bond yield rose 13 basis points to 1.33%, as Treasury bonds fell for the week. Last week, spot gold closed at $1,784.25, down 2.19%.

ETF Deathwatch for January 2021

January ETF Deathwatch contains 339 zombie ETFs and ETNs.

U.S. equity markets posted gains in only one of three indexes last week. The Dow Jones Industrial Average gained 0.11%, the S&P 500 lost 0.71%, and the NASDAQ Composite lost 1.57%.

Last week, the gold spot price was down 2.19% and the U.S. Dollar Index was down 0.13%.

Gold prices continued to consolidate around the center of a large pennant formation on the weekly chart, closing the week at $1,777.40 per ounce.

Market Update 2/16/21

Equity markets were up last week. The Russell 2000 Index posted the best performance with a 2.51% gain, followed by the NASDAQ composite (+1.73%), the S&P 500 Index (+1.23%), and the Dow Jones Industrial Average (+1.00%). The 10-year Treasury bond yield rose 4.5 basis points to 1.21%, as Treasury bonds fell slightly for the week. Last week, spot gold closed at $1,824.23, up 0.56%.

Staying relevant over the long run

I was listening to one of my favorite early morning radio shows last week. While it offers hard national and local news, it also features some lighter lifestyle stories. That can be a welcome change of pace these days.

U.S. equity markets posted gains in all three indexes last week. The NASDAQ Composite gained 1.73%, the S&P 500 gained 1.23%, and the Dow Jones Industrial Average gained 1%. Eight of the 11 sectors were up last week; Energy, which posted the largest gain, was up 4.33%. Seven of the eight Quantified Funds were up last week: The Quantified Common Ground Fund (QCGDX) gained 3.75%, the Quantified Market Leaders Fund (QMLFX) was up 3.74%, the Quantified Evolution Plus Fund (QEVOX) was up 3.33%, the Quantified STF Fund (QSTFX) was up 2.82%, the Quantified Alternative Investment Fund (QALTX) was up 2.34%, the Quantified Pattern Recognition Fund (QSPMX) gained 0.63%, the Quantified Managed Income Fund (QBDSX) was up 0.11%, and the Quantified Tactical Fixed Income Fund (QFITX) was down 0.66%.

Last week, the gold spot price was up 0.56% and the U.S. Dollar Index was down 0.62%.

Gold prices continued to consolidate around $1,800 per ounce, closing last week at $1,823.20 per ounce.

U.S. equity markets posted gains in all three indexes last week. The NASDAQ Composite gained 6.01%, the S&P 500 gained 4.65%, and the Dow Jones Industrial Average gained 3.89%.

Last week, the gold spot price was down 1.82% and the U.S. Dollar Index was up 0.51%.

Market Update 2/8/21

The major stock market indexes soared higher last week. The Dow Jones Industrial Average gained 3.9%, the S&P 500 Index rose 4.6%, the NASDAQ Composite climbed 6.0%, and the Russell 2000 small-capitalization index increased 7.7%. The 10-year Treasury bond yield rose 10 basis points to 1.168%, as its price weakened. Spot gold closed the week at $1,814.11, down $3.54 per ounce, or 1.82%.

Don’t let market volatility become your volatility

I’m sure most of you noticed the recent spike in market volatility during the last week of January, related in part to the highly unusual trading in heavily shorted stocks such as GameStop and AMC. The VIX volatility index, known as the market’s “fear gauge,” jumped to 37 on Wednesday, January 27. According to Bloomberg, this was “the biggest one-day move since the pandemic-spurred market crash” in March 2020. CNBC reported that the VIX closed on January 29 “with its biggest weekly gain since June [2020].”

Inflation warning

Gold broke down last week, testing January’s low at $1,800 per ounce before rallying back to close at $1,800.30 per ounce.