The Factor Report

Market Wrap

For the week ended August 14th, 2026, stocks were higher everywhere yet again. Bonds were lower for the week as the iShares Core US Aggregate Bond ETF (AGG) fell 0.12% with yields rising; the 10-year US treasury yield increased to 4.7%, according to Yahoo Finance. Asset price drivers of the week:

• With little data to react to, investors treaded water on Monday while they await Wednesday's key Consumer Price Index report.
• Indices were holding steady for most of Tuesday ahead of Wednesday's Consumer Price Index report, but dropped off in the afternoon when the US and Iran reached an impasse.
• On Wednesday, stocks rose as investors cheered the much-anticipated Consumer Price Index report, which showed that inflation grew moderately in July and right on forecasts.  
• Thursday brought more of the same as US indices rose on the back of a Producer Price Index release that was below forecasts.
• Things fizzled on Friday after US retail sales were a big miss relative to estimates and, likewise, consumer sentiment was off the mark.
• Next week will bring a number of housing indicators, including housing starts, building permits, and pending home sales.

Performance Summary

As shown in the chart, the US had the best return of the week as Non-US Developed lagged and Emerging Markets fell. Within the US, the tech-heavy Nasdaq outperformed again as the more traditional stocks of the Dow Jones Industrial Average fell. From a factor perspective, all factors except Quality in the US beat the broader S&P 500.

In The News

Why one strategist says the S&P 500 is set for a run.

https://www.marketwatch.com/story/a-historically-strong-stretch-for-the-u-s-stock-market-is-about-to-begin-07281312?mod=home_lead

Could the Social Security income cap finally be going away?

https://www.marketwatch.com/story/a-plan-to-save-social-security-involves-wealthy-people-paying-more-without-getting-an-increase-in-benefits-f9d70307?mod=home_lead

Think you can time the market? Think again...

https://www.marketwatch.com/story/still-trying-to-time-the-stock-market-this-chart-shows-why-its-tougher-than-you-think-79a726c4?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)

Metric Financial, LLC (“Metric”) is a registered investment adviser offering advisory services in the State of Connecticut and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Follow-up or individualized responses to consumers in a particular state by Metric in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant to an applicable state exemption.

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.