Insights

After a lights-out finish to 2019 and a strong start to 2020, equity bulls were halted in their tracks mid-month as news broke and rapidly escalated regarding the deadly coronavirus.

After 4Q’s economic and political positives wilted global bond momentum, chaotic January events and headlines restored the shine to safe-haven assets and fixed income overall.

4Q marked a strong finish to a stellar year for global equities; investors cheered improving economic and corporate data and market-friendly political progress.

With investors in “risk-on” mode thanks to improving global fundamentals and political outlook, the 2019 bond rally slowed in 4Q but indices posted strong gains for the year overall.

Capital markets flows favored the bolder (i.e., riskier) asset classes in November, with constructive trade discussions and economic data boosting equities and corporate debt while prompting some runoff in global sovereign bonds.

Equity market strength persisted in November, led by US stocks as investors delivered fresh all-time highs for major US indices.

Constructive geopolitical and trade headlines lifted global equities in October, with emerging markets leading the pack. Read more here.

Global bond yields continued to sink during October as emerging sovereigns rallied and corporates continued to advance. Read the review here.

3Q saw key shifts in the market environment, providing a better backdrop for trend-following and encouraging our view that market factors may be lining up constructively for tactical styles

The quarter opened with mixed, if largely muted, results for global bonds in July before a strong August showing, as equities sold off in response to escalating trade conflicts and macroeconomic headlines that continue to upset the global growth outlook.

September results may have teased long-awaited equity rotations – with value topping growth, small-cap outperforming and signs of life observed in ex-US stocks – but 3Q overall evidenced the same themes and performance drivers from 2Q.

Following an overall positive result in a quiet July, August saw volatility uncorked and equity markets capitulate as the US-China Trade War escalated and investors connected the dots between worrying aspects of the global macro picture.

Global bond markets were back in action in August as equities sold off in response to escalating trade conflicts and macroeconomic headlines that continue to upset the global growth outlook.

How are sector strategies being used to target alpha with precision in markets around the globe? Watch the interview to learn more.

Review of markets & key global risk-managed strategies in 2Q 2019

Global bonds snapped June’s “bull market in everything” to post mixed, if muted, results in a fairly uneventful July.

Intermittent retreats aside, it was a lukewarm but positive result for global equity markets in July.

2Q 2019 commentary for Sector Select Risk-Managed strategy is now available for download and review.

The second quarter of 2019 had opened positively – thanks to better-than-feared earnings and soothing tones from central banks – before US-China trade talks unraveled in May, sinking equities and rallying bond prices.

2Q 2019 commentary for Credit Select Risk-Managed strategy is now available for download and review.

Lifted by the risk sell-off in May, bonds in June were yet no worse for the wear even as that sell-off reversed. “An ounce of prevention is worth a pound of cure,” to quote Fed Chair Jay Powell, and it was worth at least 2% to global bond investors in 2Q.

Listen to the Credit Select Risk-Managed spotlight webinar to learn about the CSRM strategy and firm’s history.

Equity markets unraveled in May along with US-China trade talks. After leading on the upswing for all of 2019, the S&P 500 (down 6.4%) underperformed developed international stocks (-4.7%). Read more here.

Core global bonds rallied in May as risk-asset investors digested a mix of sour political tones and escalated trade hostilities between the US and China.

Core bond markets in April took a breather after a strong start to the year, and saw mixed results as investors continued to expand equity multiples and push risk-asset indices past all-time highs.

The month of April proceeded without disruption to key positive themes including increased optimism around economic recovery in China, anticipated resolution of the U.S.-China trade conflict and perhaps most importantly, global central banks tilting highly accommodative.

1Q 2019 commentary for Credit Select Risk-Managed is now available.

Bond investors in 1Q 2019 were treated to falling yields and an equity-like credit rally as central banks worked to keep the economic plates spinning.

With spirits lifted by accommodative tones in everything from central bank pressers to trade discussions, investors put the 4Q meltdown in the rearview and sent global stocks up around 12.3% in the first quarter of 2019.

As equity investors take a breather (for now) we examine just how quickly the S&P 500 reversed to the upside and consider whether this rally was unique as compared to other dramatic rallies in recent history.

Results were mixed in global bonds, with the US and credit risk outperforming as equities continued to climb.

Equity investors weren’t in quite the same hurry as they were in January, but February saw solid returns across geographies, styles and sectors.

The clouds parted for global markets in January, delivering high-single- or low-double-digit returns across essentially all equity geographies and styles.

Capital markets opened the new year in a decidedly risk-on mood, but global fixed income was no worse for the wear.

WST Capital Management named Top Guns Manager for the third quarter of 2018 by Informa Investment Solutions.

On the heels of a rough week for high yield, we’re sharing observations on credit markets and perspective on these concepts in relation to portfolio positioning.

WST Capital Management has been awarded a Top Guns designation by Informa Investment Solutions’ PSN manager database.

Watch Roger Scheffel, CIO of WST provide input on the roles liquidity and tracking error can play in the life cycle of a custom index strategy.

Watch Roger Scheffel, CIO of WST provide perspective on whether investors should consider incorporating ever-complex ETFs in their portfolios.

Watch Roger Scheffel, CIO of WST explain how custom indexing works for financial advisors.

Watch Roger Scheffel, CIO of WST discuss their take on how equally weighted sectors can work in your investment strategy.