Market Update Week 20
Following last week’s news on the Colonial Pipeline, everything is back to normal which led to oil prices retracting. Gold prices on the other hand are on the rise recently hitting a 3-month high. As you could have seen from your portfolio highlights, asset classes such as stocks (more so value stocks), commodities, oil, and Bitcoin are among the best performers so far this year. Among the worst performers are investment grade bonds, government bonds, and gold. Do not be shocked if this trend continues through the end of the year.
Tech stocks continued their decline this week dragging down major indexes with them. Investors continued swapping their tech stocks for defensive stocks and precious metals such as gold and silver. Recovery stocks were also pulling back slightly this week due to higher inflation and weaker housing data. In another continent, European markets were heading higher this week due to optimism surrounding borders re-opening this summer.