Elation

Equities Report 8

Over the past week, the broader market displayed impressive resilience and a risk-on sentiment, as evidenced by the S&P 500 index's 0.13% gain. This bullish momentum is further reinforced by the index's strong 1-month and 3-month trends, which stand at 4.8% and 4.66%, respectively. The market's upward trajectory suggests that investors remain confident in the economic recovery and the prospects for corporate earnings growth.

1. Strong Growth in Technology and Utilities:

   • The S&P Technology sector has shown significant growth over the past three months, with a robust 4.99% increase, peaking at a 1.19% rise in the last week. Year-to-date, technology stocks have advanced by 8.86%, indicating strong investor confidence and potential for continued upward movement.

   • Similarly, the S&P Utilities sector has surged by an impressive 18.36% over the past three months, solidifying its position as a stable and attractive sector for investment during volatile market conditions.

2. Resilience in Consumer Staples:

   • The S&P Consumer Staples sector also performed well, with a 2.5% increase over the past month and a total 5.25% gain over three months. This suggests a defensive positioning by investors, seeking safety in traditionally less volatile assets during uncertain economic times.

3. Challenges in Consumer Discretionary and Energy:

   • The S&P Consumer Discretionary and Energy sectors have faced downward pressures, with Consumer Discretionary stocks declining by 2.54% and Energy stocks decreasing by 8.06% over the last three months. These sectors may be experiencing the impacts of shifting consumer preferences and fluctuating oil prices, respectively.

4. Emerging Markets and Developed Markets Display Contrasting Movements:

   • Emerging Markets have shown promising growth with a 7.06% increase over the past three months, contrasting with Developed Markets which slightly declined by 4.34% in the same period. This divergence could indicate stronger growth potential in emerging economies compared to their developed counterparts.

The investment landscape reveals overarching themes of technological innovation driving growth, a preference for stability in utilities and consumer staples during market volatility, and divergent performance between developed and emerging markets.

“The most contrarian thing of all is not to oppose the crowd but to think for yourself.” -Peter Thiel

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