“Stick to the plan” allows harvest of spectacular weekly gains

“Stick to the plan” allows harvest of spectacular weekly gains

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Douglas Cote

Douglas Coté, CFA

Head of Global Perspectives Strategies

Recently, the financial markets have made their own U-turn, pivoting from their bearish path to post broad based gains across stocks and bonds for the week ending June 24. The NASDAQ Composite led the way with a stunning 7.49% gain, followed by the S&P 500 with an eye popping 6.45% return for the week. International stocks were strong too, just not as strong as U.S. domestic stocks. Bonds were positive as yields took a breather and pulled back on some perceived positive comments from the Federal Reserve. The consumer discretionary sector was the “gamechanger” this week, posting returns with an 8-handle. The catalyst hopefully was a rebound from capitulation sellers, which may mean the worst is over. Capitulation is when investors “throw in the towel” and sell and this strategist has been advising to stick to the plan because the fundamentals have been positive despite all of the bad news on inflation.

I invite you to see each week’s highlights from my webpage “Weekly” section: https://advisors.voya.com/insights/global-perspectives/frequency/weekly

You can also find other pertinent information on manufacturing, housing, consumer confidence, new home sales and more every Monday afternoon: https://advisors.voya.com/document/marketing/voya-global-perspectives-client-presentation.pdf

Voya Investment Management has prepared this commentary for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security r (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults (5) changes in laws and regulations and (6) changes in the policies of governments and/or regulatory authorities. Past performance is no guarantee of future returns.

The opinions, views and information expressed in this commentary regarding holdings are subject to change without notice. The information provided regarding holdings is not a recommendation to buy or sell any security. Strategy holdings are fluid and are subject to daily change based on market conditions and other factors.