Company Specific Risks – Q2 2019
Risks that penalize companies in our individual equity selection process. Company Specific Risks – Q2 2019
Risks that penalize companies in our individual equity selection process. Company Specific Risks – Q2 2019
How GGS identifies high quality businesses. Competitive Advantages – Q1 2019
It has been exactly one month since our last market commentary, and the market selloff has continued. In November, we described three overhangs that weighed on the market: global trade, Italian debt, and interest rates. Since that time, Italian debt has become less of a concern as the Italian government struck a budget deal with the EU. On the other hand, the remaining concerns over global trade and interest rates have intensified. Yesterday, the Federal Open Market Committee (FOMC) raised…
Why GGS utilizes this asset class, but only in moderation. Preferred Stocks – Q4 2018
Since our last commentary on October 11, 2018, the S&P 500 has both held a minor rally from $2728 to $2814 and subsequently fallen even further to today’s close of $2642. From a macroeconomic standpoint, the three primary overhangs – global trade concerns, Italian debt issues and rising interest rates – remain roughly the same as they were on October 11. Fundamentally, the main incremental negative has been weaker than expected corporate earnings. Third quarter reports were actually strong on…
Since the S&P 500 Index peaked on September 21 at $2940, it has fallen 7.2% to today’s closing price of $2728. The first few days of this decline were very gradual, followed by sharp moves lower both yesterday (-3.3%) and today (-2.1%). Yesterday’s move was the biggest one-day drop since February, when the market actually had two days in the same week that were worse at 3.8% and 4.1%. In fact, the recent decline has felt very similar to February…
How GGS manages client portfolios in preparation for market corrections. Downside Risk Management – Q3 2018
How economics influences our process and stock market returns. Economics – Q2 2018
Overarching Market Concern Global markets have recently come under pressure over the reemergence of political and debt concerns in both Italy and Spain. The chief concern for both is the fiscal budget pressure the countries have been under while other EU members assist in providing liquidity. These budget pressures have been viewed as overly burdensome by the voting public, and some anti-EU candidates have been elected to office, ultimately threatening their participation in the euro currency. A move by either…
Stock market volatility is back. Last year, it seemed like no headline could shake the extraordinary calm of the market, and the largest peak-to-trough move in the S&P 500 was just 2.8%. As we saw yesterday, this year even minor news can move the market over 3% in just a few hours. What changed? Let’s start in January. From 12/31/17 to 1/26/18, the S&P 500 Total Return Index rose 7.6%. Then from 1/27/18 to 2/8/18, the S&P 500 Total Return…