3rd Quarter 2015 Wrap Up: Equity Overview

“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.”
~ William Feather

This week on the Solari Report, I will examine equity markets year-to-date. This report will feature detailed performance charts and sector comparisons.

The equity markets in Q3 proved, yet again, that bull markets do not go up in a straight line. The US market – which has experienced significant gains since 2011 – finally entered the correction zone with the S&P 500 down -6.7% year-to-date. This was not a big swing from the high as the S&P was up 3.4% in Q2.

The large corrections came in Europe and Asia. The German DAX was up 26% for the year in Q2 and then took a swan dive, closing Q3 down -1.5%. The deepest correction came in China with the China Large Cap ETF (FXI) up 28% in April, closing Q3 down -13%.

In my Q2 Equities Overview, I addressed the subject of portfolio risk management. This week (and in our upcoming 3rd Quarter Wrap Up) I will focus on the Chinese stock market. The Chinese equity markets, reestablished after a 40 year hiatus in 1990, have grown in 25 years to a market capitalization of $7 trillion USD (or $10 trillion if you include the Hong Kong exchange) – approximately 10% of global equity market capitalization.

As always, I will be addressing  questions from subscribers in Ask Catherine. If you’re a subscriber, you can post your questions at the bottom of this page after logging in.

In Let’s Go to The Movies I will discuss David Versus Monsanto, a documentary exploring Canadian farmer Percy Schmeiser’s battle with the corporate giant, Monsanto. The recent ban on GMO’s by Scotland, Germany, France and other European countries is a major setback to the US plan to assert control of the global agricultural market. That has implications for both financial markets and the US dollar as reserve currency.

Please join me for the Solari Report’s Q3 Equity Overview this Thursday. If you’re not a subscriber yet, you can learn more about becoming one here.

15 Comments

        • Hedge fund managers losing money or going under is not a crisis. It is the market working.

          A crisis is when people can not eat because the Fed and a flotilla of hedge funds pumps a countries debt and then pulls short term liquidity so they can run in and pick up a lot of equity cheap.

          🙂

          Low commodities prices are going to produce a lot of debt defaults and bankruptcies. That spiral could get out of hand if the countries involved can not issue or borrow in a currency they control.

          • thank you for your response.

            i live in Toronto, Canada and i am only late 20’s and really concerned about oil going down to $20. i am working two jobs just to pay for my student loan for the next 10 years and pay for rent in crazy Toronto housing bubble.

            if we do see a bust in oil, i can’t imagine how bad the job market is going to be…

  1. Monsanto’s deep pocket into Ukraine ( Monsanto gave the IMF the last 15billion round to ‘invest) into the Ukraine. it is one of only two areas on earth with the farming land being “black earth.” When they were first guaranteed an IMF loan, Ukraine received the first installment, but as part of the loan agreement, it was stipulated they would have to take control of their eastern region before. They could get a second installment.

    The eastern ukraine has an asset valuation of 799 billion, the western ukraine has a valuation of 90 billion. So you can see why our country thought they could go in, as they have in other regions, and pretty much taken over. Having said that, I do not believe they had any clue what / who they were dealing with. I am ever more surprised by our strategist and well, pretty much everyone since the fall of the soviet union, they split up the eastern desk and basically closed the dept. But not a single analyst has ever made a correct analysis of the situation, and things started falling apart for them when the larger part of the population found out they were supporting the Nazi’s. What fewer people know is those nazi’s are the real deal, and the direct grandchildren who worked for Hitler in wwii. I am ever surprised about Poland’s stand, as the number of polish killed by Hitlers Nazi elites were in fact Ukrainian. Just as they did to their own people too. But regarding monsanto who is actually the second or third in line now for the top investor into Ukraine.. While our congress may have forbid the sale of lethal weapons to ukraine, the ‘black-congress did not And hence sold Stingers and one other item, both were tracked through afghanistan but instead of ukraine taking possession they sold them ( they sell everything that’s not nailed down.)
    Well, anyway.. sorry I rambled off there.

    I was wondering if you had see these videos regarding L. Fletcher Prouty, as to the origins to this “other government” he talks about his passengers which he picked up in Bucharest, and these passengers were interesting. I’ll try and find you some documents too, since they should be released. Very interesting. And goes directly to your query on ‘who is really in charge’ he speaks of 4 men. and so far I havn’t got the names, but if we know where to look, (i.e. years) then the rest should be maybe not so hard.

  2. I also wanted to ask you,
    my hubby and I need to purchase gold, and we’ve heard of these places where we can roll over our 401K into metals, but then they have to be held in (something I forget the name) Then we’ve heard of a place which allows you to keep it at your home, have you heard of this? We don’t have too much. But I am very leary of leaving it in any repository due to the ability of the repository itself being “confiscated”

    What do you recommend, or do yourself in this situation? Thank you. I realize your overseas until the SSP, at the end of Oct., woohoo! I have tickets for the live stream. .. I’m a recluse, so I don’t get out much, ok, never. but if you ever need help with research, I might be your gal 🙂
    I very much enjoy your whole series, I’m still getting caught-up, with your previous reports and soundtracks.
    ~e.

    • Elaine:

      If it is in a 401k or IRA it can not be held at home – would have to be in a depository approved by a firm that does retirement accounts with precious metals and would have to be held in PMS eligible in such accounts. Not all physical PMs are eligible.

      Catherine

  3. Catherine: it’s the first video in that series:

    Interview with Col. Prouty The Secret Team CIA – 1990’s
    btw, when I found your video, on the upload that I used, there were under 4K in views… I think I’ve got it to almost 100K, or 85K now. 😀
    I keep promoting it on twitter/fb/google, every mailing list, anon-news, lol everywhere!!
    Amazing the number of people looking for answers, yet won’t watch an hour long video for them. I had the same revelations when promoting Binney’s video too. (william Binney-satcom n/s/a/ before snowden)

    So, have you considered running for office? I haven’t a clue the type of hell you’ve been through, but I did hear about your close-calls, and your extremely long attorney battles. Nothing can wear a person to the bone faster, than something like that hanging over their head.
    Thanks for your response, Next time I’ll be sure to mark a time frame on a video I reference. (~dah~)
    Enjoy! your time in the old country.

    • Elaine:

      Thanks for your support! Not sure which video you are talking about. The one that is 85,000 was the SSP that ran up to 67,000 pretty quickly after it was launched by the SSP team.

      No plans to run for office. I want to lead the Solari Report – its my dream job.

      🙂

      Catherine

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