Kapstream Capital

Keep the dream alive. Hit the snooze button

July 2010

Equities and bonds rally in July
In early July 2010, global equity markets sold off 16% from their April highs to reach their lowest levels on the year. Since then equities rallied as investors took comfort in strong Q2 earnings and less concern surrounding the European Sovereign crisis. While it was a great risk reversal for the month, the bigger picture is that equity markets remain flat for the calendar year as the market attempts to find a direction. More times than not markets have been range bound, trading with the mentality of ‘risk on’ one day and ‘risk off’ the next.

Download PDF (280kb)

For previous monthly commentaries please view our Archive page.

US Housekeeping

July 2010

Earlier in the month the US passed the most significant financial reform witnessed since the Depression era. Despite being less onerous than originally proposed the changes are significant and will have long term implications for financial markets, risk, and transparency. While the framework is now set a number of changes and implementation details still need to be worked through. Given the significance of some of these changes,
it is worthwhile reviewing a few important points in the legislation and the potential ramifications for investors.

Download PDF (550kb)

For previous monthly commentaries please view our Archive page.