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Posted by on Dec 18, 2013 in AdvisorShares, Market Insight

AdvisorShares Weekly Market Review – Week Ending 12/13/2013

AdvisorShares Weekly Market Review – Week Ending 12/13/2013

Highlights of the Prior Week


In the week ended December 13, the major US stock indexes fell for the second consecutive week, after rising each of the previous eight weeks. Despite a near two percent pullback last week, indexes are still up around five percent since October, and the S&P 500 is up over forty percent since the end of 2011. With the hectic holiday schedules nearing, it is difficult to predict what we will see this month. Historically though, the Santa Claus Rally and January Effect bolster the markets this time of year.

Improved economic conditions may have led investors to believe that the Fed may begin tapering asset purchases sooner than expected, as the only market we follow that was in the black was the Barclays Aggregate. It appears, then, that investors’ most noticeable purchasing decision was based on great performance over the past year. Four and a half billion dollars was invested in the SPDR S&P 500 ETF, SPY, and another 380 million were invested in the market via the Vanguard S&P 500 fund, VOO. Consumer Staples took in a half of a billion dollars as well through XLP SPDR.

iShares Core Total US Bond Market ETF AGG received over $405 million in capital inflows, the third highest amount in ETFs for the week. However, investors may not feel too optimistic about impeding growth, as the iShares TIPS Bond ETF, TIP, lost $130 million.

Prior to this week’s uncertainty surrounding the Fed, Emerging markets dollar-pay debt spreads were tighter last week at 324 basis points over US Treasuries, meaning global investors do not view potential risk to be terribly frightening. Accordingly, the Vanguard Europe ETF, and the iShares MSCI Eurozone, Japan, and emerging markets ETFs all saw significant inflows. Again though, one would imagine this to slow with the tapering unknowns.

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Weekly ETF Flows

For December 9, 2013 to December 13, 2013

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S&P Sector Analysis

As for the sectors of the S&P 500, five outperformed the broad benchmark – Materials, Discretionary, Industrials, Financials, and Energy. The other half – Technology, Staples, Utilities, Telecom, and Healthcare – all underperformed.  The dispersion between the top performing and bottom performing sectors shrunk to 1.89% this week, with Materials outperforming all, and Healthcare coming in last.

For December 9, 2013 to December 13, 2013

Sector performances, as measured by the S&P 500 sector indices were:

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