Market Recap

After a sharp selloff on Monday, markets meandered over the next two trading sessions before taking off over into the end of the week. The rally erased the losses in most equity classes, the only exception being small cap stocks, which could not dig themselves out of the hole dug earlier in the week. Defensive sectors lagged for the week with Utilities and Telecom stocks finding themselves on the losing end, while consumer names and financials led the way higher. While the domestic stocks rallied, bonds broke their winning streak, with the exception of high yield, which rallied with equities (high yield is, after all, equities in drag). But to find the winners of the week we need to turn our attention to international stocks, where the EAFE managed to close more than 2% higher on the week, and even the hated emerging market equities space managed to outperform the S&P 500