This week was a good one for the US capital markets with all major indicies advancing. The Russell 2000 led the way with a weekly gain of +1.9%, followed closely by the Nasdaq at +1.7%. Year to date, the S&P 500 is +7.5%. Small cap stocks outperformed large cap stocks, and growth stocks were stronger than value stocks.
In looking at the specific sectors, energy had a strong week at +2.4%, while consumer staples lagged at -1.8% for the week. Information technology had a strong weekly gain of +1.7% and is now up +17.6% year to date.
Commodities rebounded a bit with the Bloomberg Commodity Index up +0.4%. Gold was up +1.8% for the week, closing at $1,206 per ounce. Silver was flat for the week, closing at $14.82 per ounce. Oil had a big week, posting a gain of +5.1% and closed at $68.57 per barrel (West Texas Intermediate).
In political and economic news, the fed hinted toward a rate increase next month, which should be another +0.25% to the federal fund rate, but this is already built into the market. The increasing interest rates are having an effect on the homeowners market, as sales fell again for the month of July due to buyers being priced out of the market. The trade war between US and China may begin to ease slightly as talks began in Washington between the two countries. Personally, I do not feel like there will be much give on either side, so this may not result in much movement. President Trump saw two former key people in his inner circle be dealt legal blows, but it remains to be seen if any of the issues will ultimately turn into an impeachable issue for the President. Personally, I think there would be some volatility around a president Trump impeachment, but would not expect any significant correction or losses as Vice President Pence seems to be market friendly.
Cryptocurrencies had a mixed week. Bitcoin did well, and was up +4.4% for the week, currently at $6,640. Steem ping ponged around and is currently at $0.88, which was flat for the week. EOS struggled, posting a weekly loss of -6.7%, currently at $4.89.
Overall, the US capital markets are doing well and returns are there for those who have stayed invested.
Let me know in the comments that you stopped by!
Take care,
Brian