Our services in the selected location:
  • No services available for your region.
Select Location:
Remember my selection
We have been made aware that there are external parties falsely claiming to carry out financial services on behalf of Goldman Sachs (including Goldman Sachs Asset Management International and Goldman Sachs International) in order to market fake investment products and to solicit monetary payments. These external parties may pose as Goldman Sachs through the use of fraudulent communications via email, instant messaging or phone, as well as through the use of fake brochures and other documents containing Goldman Sachs branding and logos.
The FCA has issued warnings about these fraudulent activities which can be found here and here.
It is important to know that any communication you receive from Goldman Sachs would only come from an @gs.com e-mail address and/or be found on the goldmansachs.com website. Further information regarding how you can protect yourself from fraudulent activity online and how you can contact us about this can be found on the Goldman Sachs Security page, available here.
Your browser is out of date. It has known security flaws and may not display all features of this and other websites
MARKET MONITOR 
|
March 20

MARKET MONITOR

Chart of the Week


MARKETS

During times of heightened market volatility and stressed liquidity, many investors feel a strong urge to de-risk and sell out of their equity positions. While timing the market has been notoriously difficult, history has rewarded patient investors who stayed invested over a longer time horizon. As the Chart of the Week shows, what matters most is time in the markets, not timing the markets.

Source: Bloomberg and GSAM.

Market Summary


GLOBAL EQUITIES

Despite global central banks' emergency rate cuts and accommodative actions to counteract the economic impact of COVID-19, equity markets remained volatile and choppy. The European Central Bank made a “no limits” commitment while the Bank of England (BoE) announced a bond buying program. The VIX, a fear gauge, hit a record high of 82.69 last Monday. The S&P 500 continued its selloff from the prior week and ended 15.0% lower. The Euro Stoxx 600 and FTSE 100 also ended lower by 2.0% and 3.2%, respectively. Read More

COMMODITIES

Crude remained volatile amid demand shocks from the pandemic and persistent supply-side shocks from the Saudi-Russian oil-price war. WTI dropped 24% midweek to $20.05 per barrel (bbl), an 18-year low, before rebounding to $22.43 per bbl after President Trump hinted at potential intervention in the price war. Brent fell 20.3% for the week at $26.98 per bbl. Read More

FIXED INCOME

Global sovereign debt yields rose as governments increased spending to respond to and curtail the spread of COVID-19. US 10-Year Treasury yields ended at 0.92 hitting a three-week high of 1.226% amid talks of a $1 trillion government spending plan. In Europe, accommodative central bank policy changes drove 10-Year German Bund and UK Gilt yields up 22 basis points (bps) and 15 bps, respectively. Read More

FX

Demand for the US dollar surged on the back of pandemic fears, sending the greenback up 3.88% last week against its peers, as investors and companies rushed to secure liquidity. The British pound fell to a 35-year low midweek, stabilizing slightly to end the week at $1.1569 after the BoE’s emergency rate cut. Meanwhile plans by the Bank of Japan to double its ETF purchases failed to support the Japanese yen, which saw the USD/JPY pair closing up at $111.18. Read More

Economic Summary


POLICY

In an effort to mitigate the economic fallout from COVID-19, the Fed announced a 100 bps emergency rate cut to 0.0% - 0.25% and quantitative easing program ($700 bn+) this past Sunday. Meanwhile the BoE unanimously decided to reduce its Bank Rate by 15 bps to 0.10%, its effective lower bound, and announced an increase of asset purchases by GBP 200 billion, after an unscheduled meeting. Read More

PRODUCTION

The Philly Fed Manufacturing Index plunged to -12.7 (-49.4pt) in March, its lowest since July 2012 and well below expectations, as economic weakness from COVID-19 started to be reflected. Read More

JOBS

US jobless claims climbed to its highest level in over two years at 281k (+70k) for the week ending March 14, driven by COVID-19 related layoffs in the services sector. Meanwhile, January’s UK unemployment rate rose to 3.9%, above consensus estimates, edging up from the historic low level of 3.8% in December. Read More

INFLATION

February’s Japanese national new core Consumer Price Index (CPI), which excludes fresh food and energy, disappointed at +0.6% YoY, down from January’s +0.8%. We note that the full impact of COVID-19 is unlikely to be reflected until the next reading in March. Read More

Style Performance


US Equity Size & Style Returns

MONTH-TO-DATE

Large
-26.10%
-22.80%
-19.92%
Medium
-32.05%
-29.30%
-25.37%
Small
-33.07%
-31.24%
-29.60%
Value
Core
Growth

YEAR-TO-DATE

Large
-34.69%
-29.03%
-23.71%
Medium
-39.97%
-35.96%
-29.87%
Small
-42.83%
-39.04%
-35.40%
Value
Core
Growth

MSCI World Size & Style Returns

MONTH-TO-DATE

Large
-24.90%
-21.87%
-18.96%
Medium
-31.94%
-27.45%
-24.04%
Small
-33.41%
-30.67%
-28.09%
Value
Core
Growth

YEAR-TO-DATE

Large
-34.06%
-28.73%
-23.21%
Medium
-40.54%
-34.81%
-30.25%
Small
-42.59%
-38.79%
-35.05%
Value
Core
Growth

US Fixed Income Maturity and Quality Returns

MONTH-TO-DATE

Government
1.08%
1.08%
1.27%
Corporate
-6.85%
-9.57%
-21.22%
High Yield
-15.67%
-16.75%
-20.23%
Short
Intermed.
Long

YEAR-TO-DATE

Government
3.23%
4.22%
15.46%
Corporate
-5.32%
-7.34%
-16.50%
High Yield
-16.65%
-18.00%
-19.44%
Short
Intermed.
Long

European Fixed Income Maturity and Quality Returns

MONTH-TO-DATE

Government
-0.58%
-2.29%
-4.66%
Corporate
-2.80%
-8.35%
-13.90%
High Yield
-17.22%
??????
??????
Short
Intermed.
Long

YEAR-TO-DATE

Government
-0.51%
-0.93%
1.85%
Corporate
-2.77%
-7.70%
-11.36%
High Yield
-18.62%
??????
??????
Short
Intermed.
Long

Source: Bloomberg, Barclays and GSAM (as of 03/20/20)

VIEW LESS DISCLOSURE

Key Economic Releases


Monday, Mar 23

Tuesday, Mar 24

US Manuf. PMI (Cons: 44.0, Prior: 50.7)
US Services PMI (Cons: 32.0, Prior: 49.4)

Wednesday, Mar 25

Germany Ifo Business (Cons: -- Prior: 87.7)
UK CPI YoY (Cons: 1.7%, Prior: 1.8%)

Thursday, Mar 26

US Jobless Claims (Cons: 1500k, Prior: 281k)
Eurozone M3 Supply (Cons: 5.2%, Prior: 5.2%)

Friday, Mar 27

US Core PCE (Cons: 1.7%, Prior: 1.6%)

VIEW LESS DISCLOSURE

Stay Informed and Be Ahead of the Curve


DOWNLOAD MARKET MONITOR

Access the full PDF to use with your clients

SUBSCRIBE TO MARKET MONITOR

Get the latest Market Monitor delivered to your inbox as soon as it publishes

MANAGE SUBSCRIPTIONS

Past Market Monitors



Related Insights



CONTACT US

For More Information
Funds Client Service