Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
Russia Invasion Roils Markets
COVID-19 and Federal Reserve hawkishness have passed the “market uncertainty” baton to the crisis in Ukraine. The VIX, a measure of volatility in the S&P 500, rose to 36 at the end of February, its highest level since October 2020. Market breadth, a measure of the number of companies trading above or below their 200-day moving average, has plummeted to its lowest level since the early onset of the pandemic. The S&P 500 is now in correction territory after falling 12% year-to-date, with consumer discretionary stocks down 19 percent for the year. Energy and utilities stocks are the only sectors in the green since the year began. The tech-heavy NASDAQ 100 is down 17%. In Europe, the Euro Stoxx 50 is now in a bear market territory with a loss of 20%. Treasury bonds have generally been holding their own, while gold has been the frontrunner awakening from its slumber with a return of 11% year-to-date. We expect that the markets will continue to be affected by international events, which are very difficult to forecast.
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