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Posted by on Dec 6, 2013 in AdvisorShares, Market Insight

AdvisorShares Weekly Market Review – Week Ending 11/29/2013

AdvisorShares Weekly Market Review – Week Ending 11/29/2013

Highlights of the Prior week

The Tryptophan Lull

In our last commentary, we highlighted the downward pressure occurring in the market. With the status of the U.S. budget up in the air, and the threat of impending tapering looming, there remains some understandable prudence among investors. As we enter December, however, we are cautiously optimistic as it is probable that the stock market will continue to trend upwards, especially as we move further into the holiday season – the Santa Claus Rally and January Effect historically bolster the markets this time of year.

The top performing market we follow in Table 1 last week was the NASDAQ composite, which once again maintained its outperformance for the calendar year.  Accordingly, as shown below in Table 2, the Index ETF following this sector, the PowerShares QQQ, benefitted from the second most ETFs creations last week.

Tryptophan played its part on the home front as markets remained fairly stagnant. Although the S&P and Dow did little, investors’ confidence endures with SPY holding serve at the top, receiving over $3.5 billion in assets for the week. Fixed Income markets were fairly stagnant on the week with the Barclays aggregate returning 0.07%. Related ETFs suffered, as iShares’ longer term bond ETF, TLT, lost over $500 million on the week, and PIMCO’s short term MINT lost $71 million in assets.

Foreign markets were up this past week. Once again, the MSCI Emerging Market Index slightly outperformed the MSCI EAFE Index, which has been somewhat of a rarity this year. Riding the valuation waves to the top, developed markets have risen over 20% this year. Emerging markets, on the other hand, succumbed to a variety of issues including expectations of strict federal polices, slower than expected growth in some of their larger markets, and soft commodity prices.

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Weekly ETF Flows

For November 25, 2013 to November 29, 2013

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S&P Sector Analysis

As for the sectors of the S&P 500, eight underperformed the broad benchmark – Industrials, Financials, Healthcare, Staples, Telecom, Materials, Utilities, and Energy. Conversely, only the Technology and Discretionary sectors outperformed.  The dispersion between the top performing and bottom performing sectors grew to 3.82% this week, with Technology outperforming all, and Energy coming in last.

For November 25, 2013 to November 29, 2013

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

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