Pages Menu
TwitterRssFacebook

Posted by on Jun 21, 2013 in AdvisorShares, Market Insight

AdvisorShares Weekly Market Review

AdvisorShares Weekly Market Review

Highlights of the Prior week

For the week of June 10 – June 14

Stock Markets

The major indexes finished lower after experienced another volatile week.  While no major statements came out of the Federal Reserve, speculation about what the Fed chairman might after say its next meeting ends on June 19 drove a lot of market price movements early in the week.  Worries that the Fed was close to ending its aggressive bond buying program, drove markets lower on Tuesday and Wednesday.  On Thursday, markets rallied after jobless claims fell to 334,000 and May retail sales rose 0.6%.  In addition, auto sales rose 1.8% making it the largest gain since November 2012.  While these data points may convince the Fed that it can safely scale back its aggressive monetary policy, investors seemed to now be favoring good economic numbers over news that will cause the Fed to keep its foot on the gas.  On Friday, markets reacted negatively when the Thomson Reuters/University of Michigan consumer sentiment index fell for June, after reaching a six year high in May.  The Japanese market continued to be a cause of concern for investors worldwide, it had another volatile week and on Thursday the Nikkei declined 6.4% as the government’s pace and scope of economic reform failed to impress investors.

Bond Markets

US Treasury prices rose last week, in a sign that fixed income investors are becoming more confident that after it meeting ends on June 19, the Fed will announce that it plans to extend its aggressive monetary stimulus in attempt to halt a recent rise in long term rates.  While prices for Treasury inflation protected securities and municipal bonds fell, agency mortgage-backed securities rose in price after being out of favor for a while.  High yield bonds continued to fall in price.  While there has been no across the board weakening in fundamentals for companies issuing high yield debt, higher risk bonds have fallen out of favor and high yield bonds funds have faced large redemptions in the past few weeks.  Emerging market debt has also been hurt by increasing risk aversion, as well as continuing protests in Turkey.

6.20.13 WMU Chart 1

6.20.13 WMU Chart 2

Sources:

 *Indexes are from Reuters and Yahoo! Finance 4pm closing data

*Gold prices are from EcoWin and J.P. Morgan Asset Management

*Treasury rates are from Bloomberg.com

*Municipal and high yield rates are from Barclays Capital

*30 year mortgage rate comes from the Mortgage Bankers Association (MBA)

Past performance is not indicative of future results.

 This document should not be considered investment advice and the information contain within should not be relied upon in assessing whether or not to invest in any products mentioned.  This document has been prepared without regard to the individual financial circumstances and objective of persons who received it.  The securities discussed in this document may not be suitable for all investors.

This material was compiled by AdvisorShares based on publically available data.  AdvisorShares makes no warranties or representation of any kind relating to the accuracy, completeness or timeliness of the data and shall not have liability for any damages of any kind relating to such data.

AdvisorShares® is a registered trademark of AdvisorShares Investments, LLC. The trademarks and service marks contained herein are the property of their respective owners.

Follow the AdvisorShares Team on Twitter at www.twitter.com/advisorshares and

 ‘Like’ us on Facebook at www.facebook.com/advisorsharesinvestments.

For more information, call AdvisorShares at 1-877-THE ETF1 (1-877-843-3831)

or visit www.advisorshares.com

Post a Reply

Your email address will not be published. Required fields are marked *

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.

X