U.S. equities performed well last week along with bond prices, albeit with increased volatility. Interestingly, there was some divergence across durations in bonds and divergence globally in equities as compared to U.S. equities. A number of country-specific equities have either failed to or are on the cusp of failing to stay above their 50 day moving average.
The release of inflation data points later in the week has the potential to cause additional volatility.
At the portfolio level, most notably, several longer-standing global macro recovery investments were terminated as prices appeared to enter consolidation. Consolidation by itself is not necessarily a reason to exit an investment, however, in this case, the instruments performed well over time, and valuations appeared stretched. These factors combined with price consolidation led to the decision to exit the investments.
– Best Regards
Cory Haupt
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