To further summarize the volatile week we just had, below is a look at the recent performance of various asset classes using our key ETF matrix, which covers US equity strategies and sectors, currencies, country ETFs, commodities, and fixed income. As shown, declines of 3-5% were seen across the board last week for US related equity ETFs. The losses have left the Dow in negative territory for the year now, and the smallcap Russell 2,000 (IWM) is down nearly 10% YTD.
Energy, Materials, Industrials and Technology were the worst performing sectors last week, while Consumer Staples and Utilities were actually higher -- clearly a defensive rotation.
Globally, we did see strength in Brazil (EWZ) and Hong Kong (EWH) for the week, but everything else was in the red. Developed Europe led the way lower, and the France (EWQ) and Germany (EWG) ETFs are now down double-digit percentage points in 2014. Germany (EWG) is down nearly 20% YTD, and it's also down more than 20% from its 2014 highs -- putting it in bear market territory.
While oil and natural gas both fell sharply last week, gold and silver rallied. Treasuries also saw heavy buying as the "safety trade" reigned supreme.
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Our Friday edition of The Closer always comes loaded with charts summarizing major asset class changes, equity strategy performance, and the coming week's economic data releases. There are also all of the other features included in The Closer every night: charts, returns, big movers, Stock Odds, and Bespoke's Market Timing Model. Subscribe now to get your free five day trial of Bespoke Premium! From Friday's edition of The Closer:
The worst week for stocks since May of 2012 is over. Treasury yields continue to fall, dropping by the most in the ten year since July of 2012; oil showed some life in today’s session but crude has now declined by the most since the Taper Tantrum in June of 2013. The decline in oil is in spite of a move lower in the US dollar index, its first after 12 weeks of gains. A pause for moves higher mid-week in equities, credit and emerging market equities thanks to the Fed minutes Wednesday was broken up during the European session as stocks on the east side of the Atlantic plummeted, continuing moves lower that have been underway for weeks. Economic data in the US was very light but showed no change in momentum as jobless claims continued their run of impressively low prints and the JOLTS report showed strong demand for labor. But the global economy remains less robust, and there were disappointing releases around the world. A great start to earnings from Alcoa (AA) was ignored by the market as the name declined 5.71% despite a strong report. Financials get earnings really rolling next week.