Interest rates have fallen off a cliff since hitting their recent peak on July 1st, with the yields on U.S. 2s and 10s falling 90 and 70 basis points respectively through last Friday’s close. Weaker growth, softer pricing data and rate-cutting supportive Fed-speak kickstarted the bond rally from which stocks took their cue. Then June’s U.S. CPI print hit on July 11th, triggering a greater than five standard deviation move in the relative strength of the Russell 2000 (small cap index) versus the NASDAQ 100, the largest de-rating since the bursting of the tech bubble in 2000. Hence, the S&P 500 gave back most of its month-to-date gains, finishing with a total return of 1.2%, while the Russell returned +10.2% and Canada’s S&P TSX split the difference, tabling a total return of 5.9%. Likewise, each of our two funds once again generated positive net returns.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.