This week started on another low note, as US equities tumbled on weakness in energy and tech. On Tuesday, the S&P 500 temporarily slid 10% below its record September close, while the Nasdaq fell to nearly 14% below its August high. In an equity market that has skated by whimsically on the back of relaxed monetary policy and historically low interest rates for nearly 10 years, trouble has not oft been on the mind of the fully-invested, US-concentrated, passively-exposed, large-cap investor. It seems as if we might have reached a breaking point.
This week, we nearly attempted the delicate dance of running two chartbooks concurrently – one from our partners at Gavekal, and the other from the desk of Evergreen’s Chief Investment Officer, David Hay. However, after stepping back and examining the importance and timeliness of both presentation, and the challenges of weaving together different mediums and messages. we thought it prudent to separate the two and deliver them in back-to-back weeks rather than side-by-side in the same week.
“If Trump wins, I’m leaving the country. If Hillary wins, I’m leaving the country. This is not a political post; I just want to travel.”
Stop the presses! Writing a weekly newsletter is an interesting exercise in time-management,
“When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done.”
-JOHN MAYNARD KEYNES referring to market bubbles.
Vertigo isn’t just a Hitchcock movie. Is your head spinning?
“Whenever you find yourself on the side of the majority, it is time to pause and reflect.”
Last week’s EVA gave readers a healthy dose of Charles Gave. In this edition, we are highlighting some recent insights from his son,