The Narrowing Market: A Note on Concentration
August 19, 2026 – The first half of 2026 rewarded investors who stayed the course through an unusually noisy backdrop. We navigated a war involving Iran and the oil spike that came with it, a tariff regime that was imposed, challenged in the courts, and partly refunded, a labor market that has quietly softened, and […]
Softening Data, Strong AI Demand: A Market Searching For Direction
Last week, stock prices were up and bond prices were down (yields up). The MSCI Emerging Markets and MSCI EAFE indices outperformed the S&P 500. The best-performing sectors in the S&P 500 were energy, utilities, and consumer staples. Across U.S. Russell style and market-cap indices, mid-cap growth performed best, but the value factor led more broadly.
As for fixed income, the 10-year Treasury yield was up to 4.69% over the week, and the 2s/10s Treasury yield spread steepened to +52 bps. High-yield bond spreads were nearly flat at 265 bps and still remain well below the 2025 high of 453 bps.