The Factor Report

Market Wrap

For the week ended May 22nd, 2026, stocks were higher everywhere. Bonds were also higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.43% with yields falling modestly; the 10-year US treasury yield decreased to 4.56%, according to Yahoo Finance. Asset price drivers of the week:

• Monday was a quiet day with mixed results again. The US dropped slightly while Non-US Developed led International higher. With no data to react to, investors showed a lack of patience with the war in Iran and the high price of oil.
• Although pending home sales were ahead of forecasts on Tuesday, stocks fell anyway as oil rose again with no progress on the Strait of Hormuz.
• Indices rose on Wednesday on optimism about Nvidia's earnings report, which was due after the close of trading. Trump also indicated (again) that a peace deal with Iran was near.
• Hopes for peace continued on Thursday and stocks rose again. Some solid economic data helped as well as weekly jobless claims were lower than expected and housing starts and building permits beat estimates.
• Indices were mostly higher again on Friday despite concerns about Iran and oil as a strong earnings season is now wrapped up. Investors shrugged off a report showing consumer sentiment sunk to an all-time low after another report showed leading economic indicators rose (they were expected to decline).
• Next week will be an important one even if it is holiday-shortened. We will get US home prices, consumer confidence, personal income and spending, and the all-important Personal Consumption Expenditures (PCE) price index. That is the Federal Reserve's preferred measure of inflation.

Performance Summary

As shown in the chart, Non-US Developed was this week's winner while the US and Emerging Markets were in a dead heat at just under 1%. Within the US, thanks to a solid earnings season, Tech and Tech-related stocks were the best performers. From a factor perspective, all US factors beat the broader S&P 500.

In The News

Why Roth IRA conversions can make more sense when stocks drop...but make sure to consider all of the tax consequences.

https://www.thinkadvisor.com/2026/05/21/why-clients-should-consider-roth-conversions-when-stocks-drop?utm_source=email&utm_medium=enl&utm_campaign=earlywire&utm_content=05222026&oly_enc_id=3992A1328267B3X

Why this bull market isn't like the Dot-Com bubble.

https://www.thinkadvisor.com/2026/05/19/ed-yardeni-5-reasons-this-bull-market-isnt-like-the-dot-com-bubble?utm_source=email&utm_medium=enl&utm_campaign=newsroomupdate&utm_content=05202026&oly_enc_id=3992A1328267B3X

Diversification becomes more important as your portfolio grows.

https://www.marketwatch.com/story/im-in-my-30s-and-half-my-money-is-in-vanguards-information-technology-etf-is-that-risky-1bab4a66?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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All written content is for information purposes only. Opinions expressed herein are solely those of Metric, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.