Last week, the Treasury revealed lower debt issuance than anticipated, sparking a significant shift in both stocks and bonds. After enduring rising yields for some time, the bond market experienced a sudden drop in yields, providing relief for stocks. This led to strong stock market gains, supported by oversold conditions and negative sentiment. Markets have re-entered the middle of their recent range. The ongoing tug-of-war between bullish and bearish forces, coupled with conflicting economic data, has made it challenging to make a clear case for a breakout. As we return to this midpoint, attention this week will be focused on bond yields to assess the sustainability of this recent shift.
I have attached the First Hill Trust Fund Performance for October. Across all five funds, we took a defensive position in our equity allocations, both by raising cash and rotating into more defensive sectors. This allocation change led to us outperforming our benchmarks significantly with lower volatility. Please find attached our monthly performance and standard deviation numbers compared to our benchmarks.
Please find attached our standard deviation numbers compared to our benchmarks.
