Market Notes

Category: Market Notes


Investors Seek Safety Amid Growing Uncertainty

Rising geopolitical tension between the U.S., Syria and Russia as well as between the U.S. and North Korea fueled demand for so-called “safe haven” assets last week. Gold prices rose their highest levels since last…

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Q1 2017 Review – Trump’s Plan for Growth

Q1 2017 - WHAT DOES IT MEAN FOR INVESTORS?Global equities posted strong gains during the first quarter of 2017, driven by signs of improving economic growth and increased confidence in growth prospects for economies and businesses going…

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Yields Fall, Rate-Sensitive Investments Up

As Yields Fall, Rate-Sensitive Investments Perk Up The U.S economy in March added far fewer new jobs than in the previous month—just 98,000, versus 219,000 in February—while the unemployment rate fell to 4.5%, its lowest…

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Market Gains Fueled by Stronger Growth and Confidence

Economic news in the U.S. was generally positive last week. GDP growth for the fourth quarter of 2016 was revised higher, to 2.1%, and a key reading of consumer confidence came in much better than…

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Political Uncertainty Sends Stocks Lower, Bonds Higher

Political Uncertainty Sends Stocks Lower, Bonds HigherThe U.S. economy’s health remains mixed, according to data released last week. While initial jobless claims rose more than expected, for example, new home sales for February were much…

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Investors Cautiously Optimistic – Fed Raises Rates

Investors Cautiously Optimistic as Fed Raises Rates AgainBased on evidence of continued economic growth, the Federal Reserve Board raised its benchmark interest rate by 0.25% last week in an effort to ensure the economy and…

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Job Growth, Economic Strength Rising

Job Growth, Other Data Show Economic Strength RisingHere in the U.S., several economic indicators came in better than expected last week, including: U.S factory orders, durable goods orders, wholesale inventories and employment (as reported by…

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Mixed Week: Investors Look for Clues

A Mixed Week as Investors Look for Clues from the FedLast week, we saw relatively weak economic data in the U.S. For example, a key gauge of manufacturing activity fell in February—with lower readings for…

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Global Strengthens and Volatility Low

Global Growth Strengthens and Volatility Remains LowThe U.S. economic recovery that began roughly eight years ago continues to demonstrate surprising strength, according to data released last week.Most notably: Initial jobless claims--the number of Americans who…

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International Markets – Lead the Performance Race

 International Markets Still Leading the Performance RaceInternational equity markets have posted strong gains so far this year, outpacing the U.S. markets by approximately 2 percentage points. This outperformance comes as the U.S. dollar has retreated…

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Stocks Enter New Territory on Mixed Economic Data

Stocks Enter New Territory on Mixed Economic Data As corporate earnings season continues, we’re seeing especially positive results from companies in economically cyclical sectors such as industrials and materials. Additionally, technology companies’ financial results are…

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U.S. Economic Growth Continues to Impress

The U.S economy continues to post better-than-expected results, and all signs point to continued domestic economic growth.Last week, for example, three important indicators of economic conditions all topped analysts’ expectations:Housing starts (the number of new…

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Q4 2016 Review – Official Release

Q4 2016 - Market Surprises Call for Intelligent Investing2016 had no lack of unexpected developments to keep investors on their toes. Given the surprises of 2016, it’s likely that the investors will see plenty more surprises in 2017. A…

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International Stocks Outrun U.S. Equities

International Stocks Continue to Outrun U.S. EquitiesThe global economy continues to generate better-than-expected results, especially in Europe. Last week, industrial production data beat expectations in in France, Italy and the UK.In the U.S., however, retail…

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Financial Markets Start 2017 on the Right Foot

Economic data in the U.S. and abroad continued to exceed expectations as the year began, as it did during the final months of 2016.In the U.S., the ISM Manufacturing Index, which measures activity in the…

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Stocks Fizzle, Bonds Gain Ground – 2016 Ends

The year ended quietly last week, with low market volume and activity. Equity prices fell slightly, while commodities rallied modestly. However, emerging markets stocks reversed some of their recent weakness, gaining more than 2% during…

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Mixed Results – Quiet Week for Global Markets

Mixed Results Highlight a Quiet Week for Global MarketsU.S. economic data was mixed last week. Durable goods orders, existing home sales and revised third-quarter GDP growth all came in better than was generally anticipated. However,consumer…

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The Fed Raises Rates, Signals Faster Pace on Rate Hikes in 2017

The Fed Raises Rates, Signals Faster Pace on Rate Hikes in 2017As several investors had generally anticipated, the Federal Reserve Board last week raised a key short-term interest rate by 25 basis points, to 0.50%.…

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Stocks, Bond Yields Keep Moving Up, Up, Up

Stocks, Bond Yields Keep Moving Up, Up, Up Equity markets continue to rise on a steady stream of stronger-than-expected economic results. Developments over the past week or so include: The jobless rate in November fell…

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Markets Shift in Wake of the Election

Rates Rise, Oil Soars and Value Stocks Lead the Pack U.S equity market is experiencing a rotation in leadership in the wake of the election. Based on expectations that the next administration will implement economic…

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Strong Economy, Expectations Boost Stocks

Strong Economy, Expectations Boost Stocks but Pressure BondsU.S. equities generated further post-election gains last week on expectations that more fiscalspending by the next administration will boost economic growth. Meanwhile, the U.S.economy under the current administration…

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Special Edition – Market Notes

Post-Election Wrap-Up: Potential Investment Winners and Losers—and What’s NextGlobal markets responded swiftly to the surprise results of the U.S. elections. The S&P 500 (+3.8%) and the Dow Jones Industrial Average (+5.5%) posted their largest weekly…

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Stocks Remain Down Before Election

Election Uncertainty Keep Stocks Down, Despite Strong Economic Data  Earnings season is drawing to a close, with 80% of companies in the S&P 500 having reported their earnings for the third quarter as of the…

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Stocks Tread Water

Stocks Tread Water on Mixed Earnings and Economic DataEarnings season continued in the U.S., with more than 100 members of the S&P 500 index reporting their financial results for the third quarter of 2016.Overall, companies…

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Eyes Turn to the Bottom Line as Earnings Season Ramps Up

Earnings season continued last week, with nearly 20 percent of S&P 500 member companies reporting their third quarter earnings. Some of the most notable results included:Netflix, whose shares soared more than 20 percent after the…

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Q3 2016 Report

Five Important Transitions to Keep Your Eyes On In many ways, fall is the most obviously “transitional” season there is—the landscape in much of the U.S. is literally changing color and the ground beneath our…

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Q3 2016 Video

Josh Bartholomew brings us the highlights of market and industry insights for Q3 of 2016 from our head of investments, Ron Saba. Tune in to get Horizon’s market insights which are a direct result of…

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Q3 2016 Webinar

Click below to hear from Ron Saba, Head of Investment Management, and Greg Valliere, Chief Global Strategist, as they cover highlights of Q3 and our outlook for Q4. The webinar focuses mainly on the transitions…

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Nervous Investors Confront Earnings, China, the Election and the Fed

Nervous Investors Confront Earnings, China, the Election and the Fed Stocks lost ground last week as concerns about the direction of monetary policy, corporate earnings, the Chinese economy and other issues weighed on the markets.…

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Strong Economic Data Pushes Rates Higher

Investors last week digested higher long-term interest rates, which rose on rumors of global central bank tightening due to better-than-expected economic data. For example, the U.S. services sector rose at a surprisingly rapid pace—its best…

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A Mixed Bag Keeps Investors on their Toes

The final week of the third quarter saw volatility rise somewhat as investors reacted to a series of developments—some positive, some negative. U.S. Gross Domestic Product growth for the second quarter was revised higher, to…

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Fed Holds Steady, Stocks Push Higher

The Federal Reserve Board kept the federal funds rate at its current level last week, thereby maintaining continued low borrowing costs for the time being. In its statement following the decision to hold rates steady,…

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Volatility Returns as Investors Focus on Fed and Global Central Banks

Investors are once again focused on global central banks and what they may (or may not) do in terms of monetary policy.In the U.S., economic data points are being analyzed in the context of how…

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Big Stock and Bond Losses on Friday End an Otherwise Calm Week

Stocks had been in an extraordinarily narrow trading range since mid-July. Realized volatility of the S&P 500 during this period dropped to levels not broadly seen since the mid-2000s.That changed Friday, as equity indices posted…

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The Yield Curve Flattens, While Volatility Creeps Back In

Investors spent most of the week waiting for the latest jobs report, which showed that the pace of hiring in August slowed. Market volatility was slightly elevated compared to recent weeks.The yield curve has flattened…

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Investors Hit Pause, Seek Clarity from the Fed

The recent rally that has driven global equities to their highest levels in a year slowed last week. Investors largely sat on the sidelines as they waited to hear what Federal Reserve Board Chairman Janet…

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Global Equities Help Keep the Stock Market Party Going

The S&P 500 has risen in five out of the past six weeks due to factors such as better-than-expected corporate earnings in the second quarter, improving conditions in the labor market and investor optimism that…

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Investors Finding Reasons to Stick with Stocks

The U.S. equity market continues to move higher, with gains often coming at a slow, almost grinding pace. Investors are increasingly being drawn to stocks due to a number of developments:Better-than-expected corporate earnings growth. More…

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Investors Play Wait-and-See with the Economy, Fed

The U.S. equity markets continue to trade in a relatively narrow range, remaining near all-time highs. Investors have been seeking clearer signs of economic acceleration following somewhat disappointing recent data—including higher-than-expected jobless claims, lower-than-expected factory…

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Stocks Stay Strong, Rates Stay Steady in the Dog Days of Summer

U.S. equities continue to hover near their all-time highs amid a slew of second-quarter corporate earnings results that have generally been well received by the markets. So far this earnings season, revenues and profits at…

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Investors Keep Calm and Carry On as Earnings Season Ramps Up

In the U.S., second-quarter earnings season ramped up last week, with mixed results. Companies in the healthcare and technology sectors surprised investors by beating quarterly earnings estimates, while other sectors such as consumer staples, energy…

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Q2 2016 Quarterly Review: Weather the Market

On balance, Brexit appears to share similarities with other “event driven” market downturns like the Chinese yuan-driven sell-offs of last August and again in January, or the sell-off inspired by global growth fears and Greece’s…

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Stocks Hit New Highs as Investors Say “Risk On!”

Global markets rallied last week, driving stock prices here in the U.S. to all-time record highs. Last week alone, the S&P 500 rose 1.5%. International equity markets performed even better, with the S&P Global Ex-U.S.…

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VIDEO: Quarterly Review – Q2 2016

 The investment leaders of Horizon Investments have gathered again to discuss their market and industry insights for Q2 of 2016. Horizon’s market insights are a direct result of the economic, quantitative and fundamental analysis we…

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VIDEO: Q2 2016 Conference Call

Ron Saba, Senior Managing Director of Investment Management, and Greg Valliere, Chief Global Strategist, discuss the latest on Brexit and how the vote could effect the rest of 2016. Greg explores the presidential race, and…

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Stocks Proceed Cautiously While Bond Yields Plummet

The S&P 500 Index traded in a range over the past week, as strong growth in the U.S. services sector was countered by newly released minutes from the Federal Reserve Board’s last meeting, which revealed…

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The Post-Brexit Rally

As the U.S. geared up for the 4th of July, investors around the world declared independence from Brexit worries.Financial markets swung wildly in the wake of Brexit, the UK’s vote to secede from the EU.…

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Horizon Investments’ Brexit Update

Investors awoke last Friday to the news that the UK had voted itself out of the European Union. The British exit—“Brexit”—had come to pass, despite previous predictions that voters would likely opt to remain in…

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Brexit Tests Investors’ Nerves

Brexit Tests Investors’ NervesStocks recently experienced a five-day retreat, with the S&P 500 seeing its steepest drop since February 11th.Those losses have been driven primarily by concerns over the Brexit vote on June 23rd, when…

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Sunny Skies, with a Chance for Clouds

The U.S. stock market hit its highest level in 10 months last week, with the S&P 500 Index closing at 2119 on Wednesday. Recent gains were driven largely by investors’ optimism over Federal Reserve Board…

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New Positions In Horizon’s Portfolios

Horizon recently made adjustments to its equity and fixed-income portfolios based on our analysis of various market conditions, and potential opportunities and threats. Here’s an overview of our recent investment strategy decisions.Equities: Focusing on sub-sectorsThe…

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3 Key Points If The Fed Raises Rates

Markets were jolted last week after learning that most members of the Federal Reserve Board believe economic conditions could be strong enough to warrant an interest rate hike in the near term. Previous comments by…

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Low-Volatility Settles In – For Now

Negative interest rates. Slow economic growth. The possibility of “Brexit.” If equity investors are worried about these and other concerns, they’re doing a good job putting on their poker face. Indeed, the most-watched benchmark for…

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Real Spend Update — The Fed’s Holding Pattern Favors Real Spend’s Equity-Centric Income Strategy

Last week, the Federal Reserve surprised virtually no one by leaving the Federal Funds rate unchanged at 0.5%. Most investors did not expect the Fed to raise rates, and just one of the 10 members…

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Risk Assist Update — A Strategy To Protect Investors’ Recent Gains

In response to the continued positive returns in the equity markets, Horizon has implemented a strategy in several of our Risk Assist model portfolios designed to help account holders protect their recent gains.Stocks have delivered…

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2 Sectors To Watch As 1Q Earnings Season Hits Its Stride

As earnings season for the first quarter of 2016 ramps up, investors are not exactly anticipating stellar results. First quarter 2016 earnings for the companies in the S&P 500 are expected to be down approximately…

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As Volatility Falls, Risk Assist Portfolios Continue To Unhedge

The beginning of 2016 was marked by high volatility in the markets, which has since declined in recent weeks. This has enabled Horizon to continue to unhedge many of its Risk Assist portfolios.Volatility fallsRising volatility…

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Confronting Inflation And The Quest For Yield

It’s no secret that retirees and other income-oriented investors continue to face historically low yields that can make funding their current expenses a challenge. And with the recent news that the Federal Reserve Board expects…

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Flexible Positioning For Long-Term Growth

After starting out 2016 with sharp losses, U.S. equity markets have begun to stabilize and rise. The S&P 500 index of large-cap stocks is up 11.6% during the six weeks through March 29th, while the…

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How Interest Rates Are Driven By Inflation Data

The Federal Reserve Board last week signaled that it expects to raise short-term interest rates at a slower pace than it intended to at the end of last year, citing concerns about global economic growth…

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Divergent Central Banks And The Importance Of Risk Mitigation

Global monetary policy continues to be a major driver of market conditions. The latest development: The European Central Bank’s decision last week to cut interest rates and expand its asset-purchase program in an effort to…

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Navigating The Road Ahead: 6 Investment Themes For 2016

In the dynamic and ever-changing global capital markets, investment opportunities are everywhere. The key is to identify and capture them.Horizon’s investment team has identified six themes that we believe will have a significant impact on…

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VIDEO: Quarterly Review – Q4 2015

The investment leaders of Horizon Investments have gathered again to discuss their market and industry insights for Q4 of 2015. Horizon’s market insights are a direct result of the economic, quantitative and fundamental analysis we…

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Credit Markets: Pockets Of Opportunity, Especially In Corporate Debt

Overview: In a year when credit markets have come under pressure on numerous occasions, an analysis of the details highlights areas of stress — and pockets of opportunity — heading into 2016.Economic: Credit market weakness…

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