First Week of 2022 in Markets

First Week of 2022 in Markets


Dispersion has been a big theme in equity markets over the past couple months, and that certainly did not slow down in the first week of trading in 2022. A picture is worth 1000 words, and this visual from Finviz.com does a pretty good job at summarizing the week's market action.

Larger boxes represent a sector, while the individual boxes represent a single ticker with their return in the first week of 2022.



Some highlights:

· Positive returns for financials, energy, industrials, defense, and consumer staples

· Tech lagged significantly negative returns outside of “value” tech such as INTC



Additionally:

· Long term bonds finished the week down 4%

· Mid-cap value (MDYV) finished the week green.

· Emerging markets (VWO) were roughly flat.

· RSP outperformed SPY by 1.27%


The Bottom Line


Whether this is a one-week blip or a regime change remains to be seen – but it does illustrate the risk of being concentrated in a single sector or factor.


Interested in learning more about Invariant’s process for building diversified portfolios? Please do not hesitate to reach out to gary@invariantinvestments.com