Take a look at last week’s market recap from Joe Gallemore, CIMA® Partner & Director of Investment Management for Argent Bridge Advisors. Watch the video now!
Week of 5/20
A spat of earnings misses for major retail companies sent the S&P 500 into a dive late last week. Big retailers such as Walmart & Target missed earnings and the index ended the week down -3.00%.
But there was divergence between equity asset classes. S&P 500 seemed to get the brunt of it, but US Small Cap stocks were only -1%, and the International and Emerging Market indexes were +1.5% and +3.1% respectively. Bonds also recovered +.6.
Large Growth and Tech still got it the worst each being -4% for the week. These sub-sectors have experienced the sharpest corrections in the volatility this year.
Week of 5/27
US equity indexes regained over 6% last week and Intl indexes more than +3%. Bonds also recovered about +0.8%
The reason for this short-term surge was that the reports for one particular indicator of economic activity, the Purchasing Managers Index (PMI), came in for economies all around the globe and the slowing of growth wasn’t nearly as bad as investors had expected.
So this surprise to the upside led to a very strong recovery week across all asset classes.
The lesson here is that you need to stay invested as the market searches for a bottom because the market will turn around before sentiment does. It’s no secret that historically many of the best trading days are in close proximity to some of the worst. So, if you want to catch the full scope of a future market rebound you need to stay invested because they can happen before you know it!