This column is not intended to be a structured recap of market events, or performance of Commonfund programs. That information can be found elsewhere on the TCF web page. Instead I will try to address areas of recent interest, or ideas that the investment staff thinks need greater exposure. Normally, this effort will appear in the second or third week to avoid conflicts with the flood of information that appears at the start of the month. The column will work if it discusses topics in which you have an interest.
Inflation is down, employment robust and the dollar still strong even after recent set backs.
The stock market, measured by the popular indices, is once again soaring. Maybe Eliot was thinking about active managers, for whom April was a challenge at best. What follows is a series of simple questions and answers that will hopefully shed some light on this phenomenon. The market today is facing interest rates that are on average 40 to 50 basis points higher than they were at year end, and it appears that asset reallocation is actually taking place. As recent fund flows into domestic stock funds have slowed to a trickle, the hot money in the market may have retreated to the sidelines.