Quartering Breeze

The quarter is over. How’d we do?

By many measures the second quarter was a blockbuster. The S&P was up 15%–the best performance since 1998. From their early March lows, most markets are up about 40%.And the volatility index fell almost by half: from 40% to 25%.

But of course, we’re rebounding from an historic decline, with back-to-back double-digit quarterly declines in the S&P up until March. And the kind of volatility we saw in the four months from September through March was truly historic.

Notably, the best performing sector so far this year has been Technology. Apple is up 67%. Google is up 37%. IBM is up 24%. So far this year, this sector’s earnings account for 16% of the market’s earnings-in line with its market weight. But these companies don’t have a lot of bad loans or other issues. Nor are looking for more bailout funds.
The market’s recovery seems to be anticipating the economy. The strength of the Tech sector just reinforces this. Let’s hope they’re right.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

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By | 2014-09-04T18:44:12+00:00 July 1st, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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