Market Says “It’s August” In Slow Week Dominated By U.S. Politics
Week of August 17, 2020 | Market Commentary
It was another slow week for markets as out-of-office replies pile up and volume plunges. Equities put in another positive week with international developed markets outperforming strongly (MXEA +2.4%) while emerging markets lagged (MXEF +0.4%). Domestic equities landed in between the two. The S&P 500 notched a 0.6% (SPX) gain on the week to close less than 1% from its all-time high.
Tech-heavy NASDAQ up almost 24% this year
It was another week of somewhat pro-cyclical price action, with value outperforming growth and large-cap tech lagging. We think getting too caught up in these shorter term trends is not terribly informative, especially when volumes and market interest are as light as they are right now. Zooming out, growth is up ~300 bps on value this quarter and the tech-heavy NASDAQ is up almost 24% this year!