Bellevue Perspectives

Monday Minute

  • Last week was one for the history books as the Dow plunged more than 3500 points and interest rates as measured by the 10 year Treasury saw a low that hasn’t been seen in 100 years – 1.116% intraday on Friday.  The spread of the coronavirus has created the vast majority of the panic selling, but general profit taking from frothy levels the beginning of February added to the decline as investors tried to capture gains from 2019 and into January and February.  The move prompted Fed Chair Powell to state that the Fed will “act as appropriate”, and now three rate cuts are being priced into the market.  As we stated in our email on Friday, panic selling is not a good investment philosophy.  We continue to let our asset allocation process dictate our moves, haircutting winners when times are good and buying the losers in times of panic (now).  According to Bespoke Investment Group, of the prior 14 occasions when the market sold off more than 10% in a week, 12 times the market was positive the following week and the next 4 weeks showed average returns of 2.92%.  Markets are rallying today as the sellers have currently exhausted themselves.

HighTower Bellevue is registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and Hightower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.

This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of Hightower Advisors, LLC, or any of its affiliates.