Following the extraordinary and historic decision by the Queen’s subjects to leave the European Union, Chief Investment Officer Dennison "Dan" T. Veru shared some of his thoughts on what would likely happen to the financial markets over the next several days.
When I last corresponded with you on August 25th, global equity markets were declining due to Chinese economic weakness and uncertainty on the timing of the Federal Reserve’s much anticipated decision on interest rates. At the time, I anticipated that China would respond with continued stimulus and that the Federal Reserve was going to defer raising rates until December or, more likely, well into 2016. Both of these short-term uncertainties are now known. China continues to inject liquidity into its economy and is trying to prop up its stock market, and the Federal Reserve decided yesterday to not raise interest rates at this time. Each of these events has, and will continue to have, a significant impact on U.S. stocks as measured by the S&P 500®. On August 24th, the S&P 500® had an intraday low of 1867 and closed yesterday (September 17) at 1990, a positive change of about 6.5%.
Today, Palisade's Chief Investment Officer, Dennison "Dan" T. Veru, shares his thoughts with Palisade's investors regarding the particularly volatile markets, after what news sources are calling "Dismal Monday". Please download the letter to read more.
We believe 2021 will be another favorable year for convertibles and remain a compelling asset class, especially for those that have re-examined their allocation framework and appetite for risk given the rollercoaster ride of 2020.