August Market Review
In August, the focus shifted from geopolitical tensions to monetary policy, inflation, and bond volatility, with stock markets holding up thanks to record earnings and artificial intelligence (AI). Fixed income, by contrast, was the worst-performing asset class, particularly in the long-term government bond segment. What’s going on with fixed-income securities? Fixed income, particularly long-term bonds, […]
June Market Review
In June, equities posted mixed results. Indices with the highest weightings in technology and growth stocks saw profit-taking, while more cyclical or defensive sectors—such as industrials, healthcare, and financials—performed relatively better. This factor largely explains why Europe outperformed the United States during the period. Fixed income, meanwhile, performed somewhat better, especially in the longer-duration segments, […]
May Market Review
May was a positive month for financial markets. Global equities continued their upward trend, once again led by the United States and the entire artificial intelligence ecosystem. The S&P 500 posted a gain of +16.3% between April and May, one of the strongest two-month streaks since 1950. While indices continue to rise, inflation remains stubbornly […]
April Market Review
In April, equity markets rose sharply worldwide, including in emerging markets. In the fixed-income market, performance was mixed: on the one hand, government bonds fell due to rising inflation expectations, while corporate bonds rose thanks to strong corporate earnings. Despite ongoing tensions in Iran and issues in the Strait of Hormuz, with oil prices exceeding […]
March Market Review
March began with the bombings carried out by the United States and Israel on Iran, which led to sharp increases in oil and energy prices, as well as widespread declines in equity indices and, to a lesser extent, fixed income. It is not so much the conflict itself, but its impact on a key variable—energy—that […]
January Market Review
The rises that began last year continued in January, although on this occasion the technology sector did not lead the movement, giving way to other sectors. Is something changing? Fixed income, meanwhile, is maintaining the momentum we saw last year: short maturities are performing better than long ones. This behavior is significant, as it may […]
December Market Review
I am writing this letter on December 26 so that you will have it available in early January, as I will be away with my family until January 6 on a mission called Mary’s Children in Ngong, near Nairobi. For this reason, the data you will see below corresponds to the close of the markets […]
September Market Review
September turned out to be a very positive month in what is historically a weak period. This strong performance is even more remarkable given that stock market valuations are at record highs. In the case of fixed income, the increases reflected investor optimism ahead of the upcoming Federal Reserve (Fed) meeting and expectations of a […]
August Market Review
August, in absolute terms, left a positive balance with some signs of prudence and, if we look a little more in depth, a certain concern. Both equities and fixed income rose in general terms thanks to growing hopes of rate cuts by the Fed in September. On the other hand, a certain caution is perceived […]
June Market Review
June closed with gains, especially in the US and emerging markets (MSCI Emerging Markets +6%), and declines in the European market. Fixed income was slightly positive in the various local currencies. So what has happened to cause this distortion? First of all, from the beginning of the year until the end of May, the S&P […]