The Factor Report

Market Wrap

For the week ended May 15th, 2026, stocks were mixed but lower globally. Bonds were also lower for the week as the iShares Core US Aggregate Bond ETF (AGG) fell 1.17% with yields rising; the 10-year US treasury yield increased to 4.6%, according to Yahoo Finance. Asset price drivers of the week:

• Monday was a quiet day with mixed results. The US eked out a gain with no data to react to and some hesitation over the lack of progress in Iran and the approaching meeting between Trump and Xi.
• Investors sent indices lower on Tuesday after a report showed the Consumer Price Index rose more than expected for April thanks, of course, to higher oil prices. Hopes for a Federal Reserve rate cut turned to fears of a rate hike.
• There was a temporary reprieve on Wednesday when stocks rose everywhere. Despite the US Producer Price Index coming in even hotter than expected, there was some optimism as the Trump-Xi negotiations got underway. There was some hope that China would intervene and help put an end to the war in Iran and inflation would be temporary.
• At least in the US, the optimism continued into Thursday and investors ignored higher-than-forecast weekly jobless claims and surging import prices.
• After negotiations in China ended with no outcome, investors headed for the exits as they turned their attention to the week's awful inflation data. Oil again finished the week over $100/barrel.
• Next week will be relatively quiet, although we will get minutes from the Federal Reserve's last meeting, pending home sales, housing starts and building permits, and consumer sentiment.

Performance Summary

As shown in the chart, the US was by far this week's winner and the only geography to turn in a positive week. Emerging Markets slumped, helping International drag the global All Country World Index lower. From a factor perspective, only Low Volatility won in the US.

In The News

Some eye-popping numbers since the Supreme Court legalized sports betting.

https://www.marketwatch.com/story/668-603-360-342-thats-how-much-people-have-legally-bet-on-sports-since-the-supreme-courts-2018-ruling-550e0a08?mod=home_ln

An interesting case study on why to be wary when advisors bring up the "A word".

https://www.thinkadvisor.com/2026/05/11/widow-wins-12m-from-ubs-over-annuity-margin-loan?utm_source=omeda&utm_medium=email&utm_campaign=Newsletter-&om_id=1122919440&om_eid=3992A1328267B3X&hs_ce&oly_enc_id=3992A1328267B3X

Why inflation doesn't have to mean stagflation.

https://www.marketwatch.com/story/high-gas-prices-and-inflation-are-stressing-people-out-but-the-economy-will-be-fine-as-long-as-they-keep-spending-4f4b66e3?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.