U.S. small cap stocks ended July up 10%, while U.S. large cap stocks ended the month up 1%, the widest relative performance spread since February 2000.
After a prolonged period of favoring mega-cap technology stocks, investors turned their attention to small cap stocks due to a mild June inflation report, anticipation of expected interest rate cuts, and election developments.
The Bank of Japan hiked interest rates on July 31, which, along with currency intervention, led to a strengthening of the yen. This has put carry traders in a difficult position, as they now face higher U.S. dollar repayment costs.
Aside from the Olympics, several market and political races will compete for investors’ attention—and likely contribute to market volatility—in the coming months.
July 2024 Commentary: Passing the Baton
Summary
Read and download the commentary here.
Share This Post
Have any questions? Get in touch today.