Quarterly Client Letter – Q2 2023
For much of last year the market was in a deep funk, seeing only headwinds from Federal Reserve tightening and what must surely be recessionary storm clouds blowing in fast. During the depths of this malaise, the market was down -25%. But since those depths, the Fed has slowed its pace of tightening and as a result, the valuation of our stocks has surged over 25%.
Quarterly Client Letter – Q2 2022
Following a phenomenal three-year run through the end of 2021, the performance of global markets has frustrated investors here in 2022. Many of the dynamics that have unfolded – such as stocks (and even bonds) retrenching ahead of a sharp shift in Federal Reserve (Fed) policy towards tightening – are not unprecedented. The magnitude, speed, and simultaneity, of those retrenchments, however, are much rarer.
Quarterly Client Letter – Q1 2022
The past several months have seen a volatile pullback in most asset markets, largely driven by the Federal Reserve (Fed) tightening cycle and the war in Ukraine. The war in Ukraine has been a humanitarian catastrophe, and we continue to wish for the safety and peace for everyone that has been impacted. But probably the biggest contributor to market volatility has been the ambiguity around the outlook for the Fed.
Quarterly Client Letter – Q4 2021
As we look back at the year 2021, we were pleasantly surprised by the progress that occurred – even though it didn’t always feel like we were moving forward in the moment. Over nine billion COVID vaccinations were administered globally. Sales of zero-emission vehicles surpassed sales of diesel vehicles for the first time in Europe. NASA’s Perseverance rover was able to make oxygen on Mars. Juneteenth became a federal holiday. Tom Brady won a record seventh Super Bowl. And global stocks posted their third consecutive year of double-digit gains – the first time that has happened since the mid-2000s.
Quarterly Client Letter – Q3 2021
After five consecutive quarters of gains – the longest such period in over four years – and an 89% rally, global stocks finally paused to catch their breath in 3Q. Concerns over the spread of the COVID Delta variant, a shift toward tightening policy in China and the U.S., peaking global growth rates, and a rapid surge in inflation caused by economies reopening combined to drive global stocks (as measured by ACWI) down roughly one percent. While these concerns are valid, we also believe them to be transitory.
Quarterly Client Letter – Q2 2021
2Q was another solid quarter of performance for markets, with every major asset class posting a gain. Stocks once again outperformed bonds, and within stocks the U.S. again led other regions. For the year, global stocks are now up double-digits, while investment-grade bonds are down slightly.