Something happened over the past few trading days that hasn’t happened in a number of months, the markets went down two days in a row. Criminal, I know, but as it turns out it is totally normal and ok.
The only major equity area that managed a gain for the week was Emerging Markets, while everything else ended up in the red for the week. Tech, and the Nasdaq saw the biggest losses, led lower by all but one of our FAANG friends; Amazon managed a weekly gain, while Facebook and Apple lagged the most.
Given the above results, it’s no surprise that on the factor side, Momentum and Growth lagged during this week, as they are the predominant factors that define FAANG stocks…
On the fixed income side, Long Term bonds and Junk bonds led the week, while other asset classes in fixed income were mostly flat.
Commodities continued to rally this week, with Oil, Gold, Natural Gas and most impressively Silver all notching good weeks.
The performance gap between silver and gold had hit a near all time high in the last few weeks, so the relative outperformance of silver recently should not come as a major surprise. As you can see below, gold had been outperforming silver for a good portion of the year but since July began we have seen a different story.
Next week continues earnings season with plenty of good announcements coming out.