Over the last week, the S&P 500 retreated 47 points or -1.22% as of Thursday’s market close. However, the index has remained positive with an increase of 3.25 points or 1.60% year-to-date.
Last Week Recap
We discussed some of the opportunities that we noticed in the Consumer Staples sector and this week we continue to see it materialize. This sector has experienced a gain of 0.74% while the overall market was down over one percent. In addition, late last week we pared down on our technology holdings in our Core strategies. This has worked in our favor as the Technology sector is down -2.57% over the last five days.
This reaction is not surprising given the pull back in the market. Investors have flocked out of rich valuation technology stocks and into more favorable valued equities in the Consumer Staples sector. We believe the sector rotation is at its infancy and expect it to continue.
White line: Consumer Staples. Purple line: S&P 500. Green Line: Information Technology
Next week will be a short one as the Fourth of July is on Wednesday. The U. S. markets will close early at 10:00a PST on Tuesday and will resume normal trading on Thursday. We expect light trading volume, which could lead to increase volatility if we get unexpected and unfavorable geopolitical news.
This Friday is the last trading day of the quarter and in the next few weeks we will be entering earnings season. Through the weekly market update and our quarterly newsletter, we will keep you updated on the current risks and opportunities we are seeing in the markets
We wish you an enjoyable holiday.