Although the S&P 500 had a difficult week, having to cope with the rise in yields and the failure of the Senate to pass healthcare reform, which raises questions about the broader economic agenda, it managed to close higher on the month, notes the analysis team at BBH.
“It is the seventh monthly gain over the past eight months. It is the seventh consecutive quarterly advance. In fact, since the beginning of 2013, there have only been two quarterly declines in the S&P 500 (Q2-Q3 15). Many investors still seem inclined to buy pullbacks. A break of 2400, though, would be a test of this sentiment. Over the past week, the Russell 1000 Growth Index (RLG) fell 1.5%, while the Russell 1000 Value Index (RLV) rose 0.35%. On the month, RLG fell 0.4%, snapping a seven-month advance, while the RLV rose 1.5%, breaking a three-month down draft.”