Market Commentary
September saw another setback for global markets, as European growth concerns spilled over to the U.S. For the second time this quarter, investors trimmed exposure to stocks and corporate credit in favor of cash and Treasuries. This was bullish for the U.S. dollar, which remains the strongest performing currency this year. This U.S. dollar strength combined with energy supply increases from the U.S. and concerns over International growth have put significant downward pressures on many commodities. U.S. large-cap equities held up better than International shares, while Emerging Market and small cap stocks suffered the largest losses. 
Market News 
  • Alibaba Group Holding (NYSE:BABA), a Chinese diversified e-commerce company, offered public shares for the first time, raising a record $21.8 billion ($68/share) in its initial public offering
  • The US dollar index has generated a positive return for 10 consecutive weeks, which is the longest streak in over 40 years; demand for the currency has benefitted from investors seeking higher-quality yields offered by U.S. Treasuries
  • WTI crude ended the month $15 below its 2014 high of $108 reached in June; global crude prices have suffered from supply technicals but also a strong U.S. dollar as crude is priced globally in USD
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Notes: 1) Sources: Bloomberg, J.P. Morgan Asset Management, Morningstar, Hedge Fund Research, Bureau of Labor Statistics, Bureau of Economic Analysis. 2) Data as of the date of this report unless otherwise noted. 3) U.S. GDP measures the percentage change during the referenced quarter as published by BEA. 4) Consumer Price Index for All Urban Consumers: U.S. City Average, All Items Less Food and Energy is based on 12-month percent change as published by BLS.

Disclosures: This material is provided for informational purposes only and does not constitute an offer or solicitation by HFS, or its subsidiaries or affiliates, to invest in these indices or their constituent products. The data contained herein are from referenced sources which HFS believes to be reliable. This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. The views expressed are those of HFS. They are subject to change at any time. These views do not necessarily reflect the opinions of any other firm. Investing involves a high degree of risk, and all investors should carefully consider their investment objectives and the suitability of any investment. Past performance is not necessarily indicative of future results. All data is as of the date of this report unless otherwise noted.
 


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