Post-Election Recap

Written by Alex Shen, CFA and Andy Pratt on .

As evidenced by betting markets and poll aggregators like Nate Silver’s FiveThirtyEight model, the stock market priced in a win for Hillary Clinton ahead of yesterday’s election. Donald Trump’s victory certainly caught investors off guard. While Trump is a bit of a wild card, bringing economic and political uncertainty into the equation, the end of the election brings a level of stability to financial markets.

S&P 500 futures initially tumbled as much as 5% late Tuesday night, triggering a trading halt, but when the market opened Wednesday morning, investors had digested the news and the market actually rallied throughout the day. The market fear gauge, VIX, which breached 20 ahead of the election, is down to 14 this morning.

As we’ve previously pointed out, elections historically have very little effect on the stock market – the trend prior to the election continues after the election. Initial evidence appears to again prove this to be true.

Q&A: SSR Posture, the Election and Interest Rates

Written by Andy Pratt on .

We often receive feedback and questions about current events in the stock market. Recently, popular topics are our SSR strategy positioning, the election and the looming December interest rate hike decision. Below is a Q&A addressing each topic.

Q: Small-cap stocks slightly outperformed large-caps in September and have shown some momentum recently. Why are you still weighted towards large-caps?

On the Market with Jack & Lowell

Written by Jack Burney & Lowell Pratt Jr., CFA on .

Burney Company Chairman and Founder Jack Burney and President Lowell Pratt Jr., CFA both have extensive experience investing in equities, the former founding the company over 40 years ago and the latter with 30 years of experience. From time-to-time, we share their conversations on the stock market and investing. Below are excerpts from a recent conversation regarding Value vs. Growth stocks:

August Market Commentary

Written by Alex Shen, CFA and Andy Pratt on .

The stock market enjoyed a remarkably quiet month of August as the S&P 500 finished flat and did not see a single day in which it moved more than 1%. In fact, on July 12th the S&P 500 was down 1.5% and has not seen a greater than 1% move since then. What a contrast to last August! This relative calm is reflected in VIX, the market fear gauge, though VIX only measures expected volatility 30 days out.

VIX August Update

Longer term measures of volatility are higher than normal suggesting possible future volatility. In an election year, especially an election year with two unpopular major party nominees, this perhaps should be expected, though there are other explanations as well.