Market Recap 27/12/2021

  • Market Recap 27/12/2021


    Market Recap

    December 27th, 2021

    Markets

    US markets made up lost ground from the previous week amid fading uncertainty.  The Nasdaq (3.2%) outperformed the S&P 500 (2.3%) and the Dow Jones (1.7%).  The VIX (16.7%) declined

    Sectors

    Growth outperformed value.  Consumer discretionary (3.3%) led by a wide margin, followed by IT (2.6%).  Utilities (1.3%) and financials (1.2%) lagged

    Rates

    The Fed’s preferred inflation gauge, the 12-month Personal Consumption Expenditure (PCE), jumped in November to 5.7%, the highest rate since 1982.  The MOVE (6.7%) index declined

    Commodities & FX

    Oil (4.1%) continued to rise for the third consecutive week as worries over the effect of Omicron on demand faded.  Gold (0.3%) and silver (2.8%) rose while the USD (0.6%) declined vs. major currencies basket

    Last Week's Headlines

    Our Favorite Charts

    2021 Bond Fund Flows

    Source: EPFR, Haver, Deutsche Bank

    Most S&P 500 Constituents Underperformed the Index in 2021

    Source: S&P, FactSet

    Market Performance

    Disclaimer

    This document is intended for informational purposes only and does not constitute an offer, recommendation, advice or invitation to enter into any transaction or investment, including but not limited to the purchase and/or sale and/or holding of securities and/or financial assets described herein.  Analysis presented herein is based on information provided by external sources believed to be reliable, and assumptions which may change or not materialize.  Levy Heritage did not independently verify the information and does not attest to its accuracy.  Levy Heritage assumes no responsibility for errors or omissions in this document.  Past performance is no guarantee of future results.  Each investor has different goals and therefore should seek further personalized professional advice in relation to any investment which will take into account the investor’s specific data, circumstances and needs.  Each investment involves risks and cannot be given a guarantee that the investment objectives or return on investment will be achieved, in full or in part.  Levy Heritage does not provide legal or tax advice, and recommends that all people considering such advice consult with independent legal, tax and other relevant professional advisors in their countries of origin or residence.  The information contained in this document is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed.  Levy Heritage and/or its affiliated companies and/or its shareholders and/or employees shall not bear any responsibility for any damage and/or loss caused by the use of the enclosed information.