Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 0.5%, the S&P 500 was down 0.4%, and the NASDAQ fell 0.1%. Foreign stocks (MSCI EAFE) were also down for the week, falling 0.2%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.23%. (Data source: Wall Street Journal)
Greenland Tensions Diffuse Quickly
President Trump’s push to purchase Greenland caused some worry for investors as it looked like we could be headed to another trade war. With the World Economic Forum in Davos last week, all eyes were on world leaders and business leaders as they took center stage. The good news that came from Davos was the agreement between NATO and Trump on a compromise for Greenland in the future. This helped calm investor nerves and helped the market rebound after a sharp slide earlier in the week. This is a reminder that this year could see more volatility than the 2nd half of 2025.
Investors Rush to International Equities
Flows into international developed markets have been roughly $50 billion to start 2026, less than 2% has gone into the U.S. This has been something to watch for as international markets beat U.S. markets handily last year. That trend has continued to start 2026 as the S&P 500 is up just over 1% and the MSCI EAFE is up nearly 3.5%. U.S. markets dominated since 2008 as the S&P has more than doubled the MSCI EAFE. This could be a time where international markets play catch-up and outperform U.S. markets. While it has just been over a year of this trend, it is something investors are paying close attention to.
Gold $5k Silver $100
2025 was a historic year for precious metals, and 2026 is off to another great start. Gold crossed over $5,000 per ounce and silver over $100 per ounce. To start 2025, gold was at $2,263 per ounce, and silver was under $29 per ounce. The rally in precious metals has caught investors by surprise as people continue to buy into the rally. While a repeat of 2025 is unlikely, it will be interesting to see just how high the metals go before we see a pullback. (CNBC)
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Quiz
Which index below has performed the best to start 2026? (Scroll Down for Answer)
- S&P 500
- MSCI EAFE
- Dow Jones
- Russell 2000
Answer:
4. Russell 2000. The Russell 2000 is a small cap index and is already up over 7% to start the year. Another interesting start to the year, the Mag 7 stocks are negative despite the overall market being positive. We will see if there is a market leadership change in 2026.
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