News

Commentaries, white papers, and news items are listed here as they become available. To view and sort by date or category, please visit the Wilshire Advisor Solutions Knowledge Center. For media inquiries pertaining to Wilshire Associates, please contact our corporate headquarters at 1-310-451-3051.

Wednesday, June 7, 2017

» May 2017 Monthly Market Commentary
Market Commentary, Commentary

U.S. Economy and Markets

  • Domestic equity markets were positive in May, as the Wilshire 5000 Total Market IndexSM returned 1.00% and the S&P 500 Index returned 1.41%.
  • Market volatility, measured by the CBOE Volatility Index (VIX), ended the month at 10.41, a decrease from its April close of 10.82.
  • GICS sector performance was mixed in May, with the Information Technology and Utilities sectors leading the group, returning 4.31% and 3.97%, respectively. On the other hand, the Energy sector was the worst performing sector in May, falling -3.67%.
  • Growth stocks delivered stronger performance than their value-oriented counterparts this month, as the Wilshire U.S. Large Cap Growth IndexSM and the Wilshire U.S. Small Cap Growth IndexSM posted returns of 1.95% and -1.37%, respectively. The Wilshire U.S. Large Cap Value IndexSM and the Wilshire U.S. Small Cap Value IndexSM returned 0.73% and -2.94%, respectively.
  • Total nonfarm payroll unemployment increased by 138,000 in May. The unemployment rate was little changed at 4.3%.

Wednesday, May 10, 2017

» April 2017 Monthly Market Commentary
Market Commentary, Commentary

U.S. Economy and Markets

  • Domestic equity markets were positive in April, as the Wilshire 5000 Total Market IndexSM returned 1.05% and the S&P 500 Index returned 1.03%.
  • Market volatility, measured by the CBOE Volatility Index (VIX), ended the month at 10.82, a decrease from its March close of 12.37.
  • Performance across GICS sectors was mixed for the month, with the Consumer Discretionary and Information Technology sectors leading the group, returning 2.59% and 2.48%, respectively. On the other hand, the Energy sector was the worst performing sector in April, falling -3.36%.
  • Large cap stocks outperformed their small cap counterparts this month, with the Wilshire U.S. Large Cap IndexSM and the Wilshire U.S. Small Cap IndexSM returning 1.06% and 0.98%, respectively.
  • U.S. manufacturing activity, as measured by the Institute for Supply Management’s PMI, registered 54.8% in April, down from the March reading of 57.2%. Generally, a reading above 50% indicates expansion.

Wednesday, May 3, 2017

» Investment Strategy Update, May 2017
Market Commentary, Commentary

Investment Strategy—Positioning for Relative Opportunities

Global equity markets continued to climb higher early in the first quarter of 2017, on momentum and positive sentiment in response to the surprise election of Donald Trump. The market had been pricing in optimism regarding the new administration’s ability to execute on its policy agenda of lighter regulation and looser fiscal policy. However, markets were met with resistance mid-quarter on the heels of a failed health care vote and the realization that future policy actions may be less certain. We expressed our concern in our last letter that there remains significant uncertainty regarding actual policy implementation, noting that our analysis continues to focus on the fundamentals of the macroeconomic landscape, while considering how such fundamentals may change in response to policy actions.

Friday, April 14, 2017

» First Quarter 2017 Market Commentary
Market Commentary, Commentary

The U.S. Equity Market: The U.S. stock market, represented by the Wilshire 5000 Total Market IndexSM, was up 5.61% for the first quarter of 2017. The market has been trending generally upward for more than a year now, including six straight quarterly gains. Economic releases during the quarter were strong and markets took comfort in both the Federal Reserve’s 0.25% increase in the overnight rate and its accompanying statement. Despite accelerating price increases, the Fed’s forecast for the Fed Funds rate at year-end 2017 was little changed from their December meeting.

Wednesday, March 8, 2017

» February 2017 Monthly Market Commentary
Market Commentary, Commentary

Domestic equity markets set multiple record highs in February, as the Wilshire 5000 Total Market IndexSM returned 3.72% and the S&P 500 Index returned 3.97%. Market volatility, measured by the CBOE Volatility Index (VIX), ended the month at 12.92, an increase from its January close of 11.99.

Friday, February 10, 2017

» Investment Strategy Update, February 2017
Market Commentary, Commentary

Investment Strategy—Proceeding With Caution

U.S. equity markets rallied in the fourth quarter of 2016, on the heels of the surprise election of Donald Trump. Some aspects of the new administration’s policy agenda may foster higher economic and earnings growth (regulation and fiscal policy), while other aspects may prove to be prohibitive of growth (immigration and trade). Markets moved quickly to price-in the positive features of President Trump’s expected policy actions, with less attention to the potentially negative consequences. Recognizing that there remains significant uncertainty regarding actual policy implementation, our analysis continues to focus on the fundamentals of the macroeconomic landscape, while considering how such fundamentals may change in response to policy actions.

Thursday, February 9, 2017

» January 2017 Monthly Market Commentary
Market Commentary, Commentary

Domestic equity markets were positive in January, as the Wilshire 5000 Total Market IndexSM returned 1.78% and the S&P 500 Index returned 1.90%. Market volatility, measured by the CBOE Volatility Index (VIX), ended the month at 11.99, a decrease from its December close of 14.04.

Monday, January 9, 2017

» Fourth Quarter 2016 Market Commentary
Market Commentary, Commentary

The U.S. Equity Market: The U.S. stock market, represented by the Wilshire 5000 Total Market IndexSM, was up 4.54% for the fourth quarter and 13.37% for 2016. This marks the Index’s fifth straight quarterly gain and, more remarkably, eighth straight annual gain. A portion of that “winning streak” is due to a rebound from the global financial crisis selloff. However, the market has continued to produce strong returns after the initial recovery, with a 14% annualized gain over the past four years. Following several rocky months to begin the year, U.S. equities trended upward for the rest of 2016. The fourth quarter benefited from strong economic growth and signs of confidence from the Federal Reserve.

Friday, December 9, 2016

» November 2016 Monthly Market Commentary
Market Commentary, Commentary

Domestic equity markets were positive in November, as the Wilshire 5000 Total Market IndexSM returned 4.56% and the S&P 500 Index returned 3.70%. Market volatility decreased in November, with the CBOE Volatility Index (VIX) ending the month at 13.33, down from 17.06 at the end of October.

Thursday, November 10, 2016

» Investment Strategy Update, November 2016
Market Commentary, Commentary

Investment Strategy—Defensively Seeking Returns: Global equity markets delivered compelling returns in the third quarter of 2016, following a decline in equities late in the second quarter. Investors have continued to take advantage of price declines in equities throughout 2015 and 2016, shrugging off geopolitical concerns, slower economic growth and inflation, and a deterioration in earnings growth. The persistent support for equities is both technically encouraging and fundamentally concerning, as it may serve as a sign of investor complacency.

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