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Par Daniel Van Hove, CFA, Managing Director Bellatrix Asset Management S.A.
EQUITY MARKETS
U.S. equities, as measured by the S&P500 index, plunged 14% between 23 April 2010 when a 19-month high was reached, and the end of August 2010. Reasons for such a correction are to be found mainly in a weak macro-economic environment picture (recent record drop in existing home sales, widening budget deficits putting the global economy in jeopardy).
U.S. unemployment data for August have just been released with job losses lower than expected, helping to soothe fears the U.S. economy would slip back into a major recession. Non-farm payrolls declined by 54,000 for the month, well below market expectations for a drop of 100,000, while private-sector...
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