Quarterly Commentary
Baker Avenue's research team provides information-rich analysis to help investors navigate the dynamic landscape of the investing world.
2011 Year-End Review and Market Outlook
Roller Coaster Ride of Volatility in 2011
The stock market repeated its roller coaster ride in 2011 violently jarring nerves and rattling the confidence of investors. It was one of the most volatile years for the stock market with stocks 50 average downs gyrating at a daily rate of twice the 50‐year moving average. Despite the dizzying ups and downs, the ride ended right where it started.
2011 Third Quarter Review and Market Outlook
Volatility “The New Normal”
In 2010, PIMCO’S Bill Gross and Mohamed El‐Erian coined the phrase “The New Normal” to describe expectations of slower growth in US GDP going forward. However, today “The New Normal” is just as apt to describe the heightened volatility we are now experiencing in the US and global stock markets.
2011 Second Quarter Review and Market Outlook
The Volatility Ride Continues
The widely quoted adage “sell in May and go away” would have been an excellent strategy for most investors as volatility returned to the markets in the second quarter. Sovereign Debt concerns in Europe, a slow down in China, and higher unemployment rates in the US all contributed to rattle markets.
2011 First Quarter Review and Market Outlook
Cautious Optimism
In our 2010 year‐end letter, we expressed optimism about the market and about our investment strategies entering 2011. Our optimism was well‐founded as the momentum we saw in Q4 carried strongly into the first quarter. The All Cap Core strategy outperformed the S&P 500 benchmark despite a more defensive cash posture due to the turmoil in the Middle East…
2010 Year-End Market Review and 2011 Outlook
Regaining Upward Momentum
While we are optimistic about the prospects for 2011, in retrospect 2010 was perhaps one of the most challenging years we have experienced in recent memory. In the third quarter, the All Cap Core strategy notched its worst period of performance in its history relative to its benchmark. As investment managers we take the responsibility and stewardship…