Home > News > Market Moves > Why the Stock Market May Break the Mid-Term Election Year Curse
Market Moves

Why the Stock Market May Break the Mid-Term Election Year Curse

Seldom are the 2nd and 3rd quarters good for stocks. But their performance thus far is OK.

By Larry Light

To the extent politics affects the stock market, mid-term elections are not historically a friend. . But maybe this one will be different, if early indications prove out.

To Sam Stovall, the chief investment strategist for CFRA, “the two quarters leading up to the mid-term elections have been the most challenging of the entire 16-quarter presidential cycle.” The second and third periods have recorded the only two successive quarterly declines since World War II, he wrote in a research note, down 2.5% and 0.9%, respectively.

Stovall wrote this before the second quarter was over. Well, the S&P 500 climbed 5.7% in the April-June period, fueled by boffo earnings. And as we begin the third quarter, the broad market is up 3.85%. Investors are apparently shrugging off negative news, such as a gathering trade war.

As Stovall explained it, “During mid-term election years, one word tends to describe investors’ mindset and the driving force behind share-price performances: uncertainty.” That translates to fear of a partisan gridlock as the party out of power gains seats in Congress, and political messes don’t inspire stock traders.

Want the latest institutional investment industry
news and insights? Sign up for CIO newsletters.

But at the moment, investor qualms seem to be overwhelmed by the good news.

Tags: , ,

Home > News > Newsmakers > Two University of California Investment Managers Replace Departees
Newsmakers

Two University of California Investment Managers Replace Departees

Samuel Kunz and Ronnie Swinkel add responsibilities after three top people leave.

By Chris Butera

The University of California Regents’ office is expanding the responsibilities of two of its executives to help cover the slack left by recent departures in the investment operation.

In addition to their other duties, Samuel Kunz, managing director of asset allocation and investment strategy, will run passive public equity investments. Ronnie Swinkels, director, public equity, will also be in charge of the active decisions. Their titles will not change. They will now report directly to the university’s chief investment officer, Jagdeep Singh Bachher.

This comes during an exodus for the office’s investment division.

Earlier this month, Eduard van Gelderen left his job as senior managing director for a gig with the Canadian Public Sector Pension Investment Board. He oversaw equities and commodities. Also, Tom Fischer, a former investment officer in charge of macro, and Scott Chan, a former senior managing director who managed global equities, left their posts in June and July. Chan will start a deputy CIO job with the $224.9 billion California State Teachers’ Retirement System on August 1.

Want the latest institutional investment industry
news and insights? Sign up for CIO newsletters.

Following van Gelderen’s exit, Bachher said there were no plans to replace him. Instead, his responsibilities would be split between internal staff.

The Regents office manages the investments of the University of California’s $66.7 billion pension fund and its $11.9 billion endowment.

“We are fortunate to have such a deep and diverse talent within our office who are ready to step into new leadership roles,” said Bachher. “These moves will ensure the seamless execution of the investment strategy I have put in place over the four years I have served as the university’s chief investment officer, and reflect our commitment to grow and nurture the next generation of leaders in our industry.”

 

Tags: , , , ,

«