The Factor Report

Market Wrap

For the week ended July 11th, 2025, stocks were modestly lower around the world. Tariffs are back on center stage. Monday started off on a sour note as the Trump administration held firm that all tariffs will go into effect on August 1st unless our trading partners come up with agreements. Wednesday saw a rally in Developed Markets, particularly the US, although that was largely rekindling of the AI trade as Nvidia reaching $4 trillion in market capitalization was the major news of the day. The release of the Federal Reserve's June meeting minutes went largely unacknowledged as they said what everyone expected: there is room for one or two rate cuts, but not until there is greater clarity on tariffs. Despite a pause in the "tech rally", indexes continued to rise on Thursday as weekly jobless claims were lower than expected, shrugging off Trump's threat of a 50% tariff on Brazil. Which segued into Friday, which closed out the week on the same sour note started on Monday after Trump threatened a 35% tariff on Canada. As you can see, it was a quiet week from a data perspective; that will not be the case for the coming week. We will get a look at multiple inflation inputs, including the Consumer Price Index, the Producer Price Index, and import prices. That will be peppered with commentary from a number of Federal Reserve officials. Bonds didn't fare as well as the iShares Core US Aggregate Bond ETF (AGG) fell 0.37; the 10-year US treasury yield rose to 4.42%, according to Yahoo Finance.

Performance Summary

As shown in the chart, there was no meaningful winner geographically, although Emerging Markets did fare the best while the US, impacted most by tariff fights, lagged. Within the US, the Dow Jones Industrial Average was by far he week's loser, again thanks to trade tensions. The tech-heavy Nasdaq held up relatively well courtesy of the mid-week rally noted above. From a factor perspective, Value outperformed the global All Country World Index (ACWI).

In The News

What do people think it takes to feel wealthy?

https://www.thinkadvisor.com/2025/07/09/heres-how-much-money-it-takes-to-feel-wealthy-schwab/?kw=Here%27s%20How%20Much%20Money%20It%20Takes%20to%20Feel%20Wealthy%3A%20Schwab&utm_source=email&utm_medium=enl&utm_campaign=earlywire&utm_content=20250710&utm_term=tadv&oly_enc_id=6911H2583589A7Z&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

Estate planning strategies to take advantage of Trump's tax bill.

https://www.thinkadvisor.com/2025/07/08/6-estate-planning-strategies-sparked-by-trumps-budget-and-tax-bill/?kw=6%20Estate%20Planning%20Strategies%20Sparked%20by%20Trump%27s%20Budget%20and%20Tax%20Bill&utm_position=1&utm_source=email&utm_medium=enl&utm_campaign=financialplanninginsider&utm_content=20250709&utm_term=tadv&oly_enc_id=6911H2583589A7Z&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

How the passage of Trump's tax bill can help you at tax time.

https://www.marketwatch.com/story/how-the-passing-of-trumps-megabill-can-help-you-at-tax-time-6bca7fb8?mod=home_lead

Disclosures

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s). Moreover, you should not assume that any of the above content serves as the receipt of, or as a substitute for, personalized investment advice from Metric Financial.

All data and performance information sourced from Morningstar and MarketWatch, unless otherwise indicated.

USA is the MSCI USA index, Non-US Developed is the MSCI EAFE index, Emerging Markets is the MSCI Emerging Markets index, and All Country World is the MSCI ACWI index. One cannot invest in an index. Because the factor indexes have varying inception dates, some of the returns provided are back-tested and do not represent actual performance. Inception dates are as follows:

Momentum = MSCI ACWI Momentum NR USD Index (Inception: 11/30/95)

Value = MSCI ACWI Enhanced Value NR USD Index (Inception: 5/29/15)

Quality = MSCI ACWI Quality NR USD Index (Inception: 5/29/92)

Low Volatility = MSCI ACWI Minimum Volatility (USD) NR USD Index (Inception: 5/28/93)

Size = MSCI ACWI Risk Weighted NR USD Index (Inception: 4/6/11)

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