Last week the old grandaddy of TV benchmarks, the Dow Jones Industrial Average, hit 10 consecutive days of gains. The Dow has only accomplished this feat 15 times prior going back over a century to 1920. The last time was in 2017. This is another marker that "animal spirits" are alive and well in the markets, as also witnessed by the AAII Investor Sentiment Survey last week striking its most bullish reading since April 2021. It is interesting to note that the stock market isn’t just dominated any more by the "Magnificent Seven", but that market leadership appears to be shifting toward other parts of the global equity market, such as the aforementioned Dow Jones. We also noted last week in this space how international stocks have likely surprised investors with better-than-expected gains over the last year. Now, as seen in the table below, smaller and more value-oriented companies are performing better than growth stocks of late.
As for this coming week, it’s a busy one. The Nasdaq 100 is doing a special rebalance Monday to reduce the concentration risk from the Magnificent Seven in that index. Nearly 20% of the companies report 2Q23 earnings this week, including some of this year’s leaders: Microsoft, Alphabet (Google), and Meta (Facebook). The Federal Reserve is also expected to raise the Fed Funds rate this Wednesday to 5.25-5.50% - it’s highest level since 2001. The Fed’s preferred inflation measure, the PCE, is also released this Friday.
Stay invested. Stay diversified. Stay disciplined.
1977-OPS-7/24/2023
The views expressed herein are exclusively those of Orion Portfolio Solutions, LLC d/b/a Brinker Capital Investments a registered investment advisor, and are not meant as investment advice and are subject to change.
The CFA® is a globally respected, graduate-level investment credential established in 1962 and awarded by CFA Institute — the largest global association of investment professionals. To learn more about the CFA charter, visit www.cfainstitute.org.
The CMT Program demonstrates mastery of a core body of knowledge of investment risk in portfolio management. The Chartered Market Technician® (CMT) designation marks the highest education within the discipline and is the preeminent designation for practitioners of technical analysis worldwide. To learn more about the CMT, visit https://cmtassociation.org/.
Think2perform’s Behavioral Financial Advice program integrates traditional finance practices with psychology and neuroscience to improve emotional competency and decision-making behavior that increases effective usage of the financial plan with clients. To obtain the Behavioral Financial Advisor (BFA) designation, participants must complete a self-directed course, which takes 20-30 hours to complete, and includes a mix of interactive exercises, videos and case studies. To learn more about the BFA, visit https://www.think2perform.com.
Wealth Management services offered through Orion Portfolio Solutions, LLC d/b/a Brinker Capital Investments a registered investment advisor.