The Factor Report

Market Wrap

For the week ended February 13th, 2026, stocks were mixed, but about flat globally. Bonds were higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.86% with yields falling; the 10-year US treasury yield dropped to 4.06%, according to Yahoo Finance. Asset price drivers of the week:

• Stocks were higher everywhere on Monday. With no data to react to, investors were feeling optimistic about a week of important data, including January's jobs report and inflation reading.
• Although International indices continued higher on Tuesday, the US fell. We saw a lower-than-expected employment cost index and flat retail sales, which initially pushed stocks higher, but the rally faltered.
• Wednesday was similar - International rose and the US was about flat. Investors initially cheered a report showing the US added more jobs than expected in January, but the enthusiasm faded as the report may reduce the likelihood of a Fed rate cut at their next meeting.
• Stocks headed lower everywhere on Thursday in a repeat of the prior Thursday as investors showed renewed concern about AI disruption. Software stocks again bore the brunt of the selling.
• Friday brought another failed rally. Indices headed higher in the morning after a report showed January's Consumer Price Index was lower than forecasted, but worries mounted it wasn't low enough to warrant a rate cut, especially after Wednesday's jobs report.
• Next week will be another busy one as we will get some key data points including durable goods orders, housing starts, and a first read on fourth quarter US GDP. It will all be rounded off by the Federal Reserve's preferred inflation reading, the Personal Consumption Expenditures price index on Friday.

Performance Summary

As shown in the chart, Emerging Markets won the week followed by Non-US Developed. The US ended lower thanks to Friday's sell-off. Within the US, the Dow Jones Industrial Average was again the winner as it was Tech and Tech-related shares that dragged the broader market lower. Thanks to that continued rotation, from a factor perspective, all factors except Quality outperformed the global All Country World Index (ACWI).

In The News

US tax refunds are up this year. How does yours stack up?

https://www.marketwatch.com/story/tax-refunds-are-up-this-year-to-an-average-of-2-290-early-irs-numbers-show-how-does-yours-compare-3c4e2267?mod=home_lead

Have an inherited Roth IRA? Here's what to know.

https://www.thinkadvisor.com/2026/02/05/yes-inherited-roth-iras-have-rmds-heres-what-to-know/?kw=Yes,%20Inherited%20Roth%20IRAs%20Have%20RMDs.%20Here%27s%20What%20to%20Know.&utm_position=1&utm_source=email&utm_medium=enl&utm_campaign=lifehealthweekender&utm_content=20260208&utm_term=tadv&oly_enc_id=6911H2583589A7Z&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

A great piece on the paradox of living longer, but not having enough saved.

https://www.marketwatch.com/story/good-news-were-living-longer-too-bad-most-of-us-cant-afford-it-66a86498?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.