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Posted by on May 18, 2015 in ETF Strategist, Market Insight

AdvisorShares Weekly Market Review – Week Ending 5/15/2015

AdvisorShares Weekly Market Review – Week Ending 5/15/2015

Highlights of the Prior Week

Retro Market

Macro

Last week the news was more volatile than the equity market. The week started with a throwback story of an AOL merger and although the first one is generally viewed as a seminal event in the popping of the internet bubble, the latest one might be best thought of as an amusing footnote. Later in the week came a fraudulent buyout offer of the other big multilevel marketing firm.

Even the bond market had more action than equities. After closing last week at 2.15% the US Ten Year Treasury Note rocketed as high as 2.33% on Tuesday. Then came one sour economic data point after another. Industrial Production had a negative print, Consumer Confidence was weak and Retail Sales came in below estimates all of which sent the yield back down to 2.14%.

None of that was an obstacle for equities however. The Dow Jones Industrial Average gained 45 basis points, the S&P tacked on 0.31% to close at an all-time high, the NASDAQ added 0.89% and the Russell 2000 was better by 72 basis points.

Foreign equity markets were generally more pronounced last week. The DAX fell 2.24%, the CAC 40 dropped 1.89% and the FTSE 100 gave back 1.23%. Asian markets were more upbeat with the Shanghai Composite gaining 2.45%, the Hang Seng had a 93 basis point lift while the Nikkei added 1.78% and the ASX 200 went up by 1.79%.

Global bond yields continued to move higher last week as part of a multi week trend. The German bund yield moved to 0.62% after having been as high as 0.72%. The French OAT yield moved up to 0.90%, the Swiss ten year yield actually downticked to a positive seven basis points, Spain moved up to 1.73% and Italy now yields 1.77%.

West Texas Intermediate Crude spent much of the week above $60 but closed Friday just below that level on its way to a slight gain for the week. Gold put in a stronger week gaining 2.99% as it moved higher four out of five days. The move in gold may be attributable to action in the currency market. The euro gained just over 2% against the dollar, the British pound gained 1.70% against the greenback and dollar dipped slightly against the yen.

ETF News & Data

There were five new funds last week including Global X’ suite of what it calls scientific beta funds. So far this year funds that one way or another look to enhance market cap weighting have proliferated and this trend seems likely to continue.

Broad based domestic equity index fund took the top three spots on the list for positive weekly fund flows. The redemptions list was more of a mixed bag including gold, long dated treasuries and several narrow based equity ETFs. Despite an upward bias to gold and oil last week, commodity funds had net outflows of $369 million.

Interesting Reads

SeaWorld has of course taken a beating of perception and in the markets over questions and concerns about how the animals are treated. Recently you may have seen the commercial it has started running trying to repair the damage done. TheDodo.com reported Recently Spotted 103-Year Old Orca Is Bad News For Sea World. According to the article SeaWorld says it is difficult to know how long killer whales can live while the Whale & Dolphin Conservation Project estimates that average life of an orca in captivity is 4.5 years and that many at SeaWorld die before 20. If Granny, as she is known, really is 103 then the argument for captivity becomes even more difficult to make.

Sports

If you love baseball statistics then you’ll want to read Corey Kluber Tosses One Of The Best Games In MLB History.

Kluber had pitched eight innings and struck out 18 St. Louis Cardinals. He had thrown 113 pitches, averaging 14 pitches per inning. He would come out for the ninth on a cold night in Cleveland with the chance to tie or break the nine-inning record of 20 strikeouts, done twice by Roger Clemens and once by Kerry Wood.

Source: Google Finance, Yahoo Finance, Wall Street Journal, Bloomberg, Barrons, ETF.com, XTF.com, Bespoke Investment Group, ESPN. Ritholtz.com. thedodo.com
 
2015.5.18_Table1
 
Weekly ETF Flows

For May 11th, 2015 to May 15, 2015

2015.5.18_Table2
 
S&P Sector Analysis

As for the sectors of the S&P 500, four outperformed the broad benchmark – Healthcare, Utilities, Energy and Technology. The remaining six – Discretionary, Industrials, Staples, Financials, Telecom and Materials – each underperformed.  The dispersion between the top-performing and bottom-performing sectors was roughly 5.37% this week, with Healthcare outperforming all, and Materials coming in last.

For May 11th, 2015 to May 15th, 2015

As measured by the S&P 500 sector indices, respective performances were:

2015.5.18_Table3

The AlphaBaskets blog provides frequent market insight and commentary by AdvisorShares Investments, LLC, created by AdvisorShares and other leading active managers.  AdvisorShares Investments is an SEC-registered investment adviser and the investment adviser to the AdvisorShares actively managed ETFs. The views expressed on AlphaBaskets should not be taken as investment advice or a recommendation for any of the actively managed ETFs advised by AdvisorShares.

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