Stocks eked out small gains and US Treasuries had small losses this past week, with plenty of economic news – especially on Friday – largely resulting in a "meh" response. European stocks closed at record highs, while gold and the greenback gained ground. Bitcoin continued to suffer losses.

I am going to start the update this week by focusing on markets, which is probably what most of my readers care most about.  The table below is a summary of the week. As far as equities, portfolio allocations so far this year have favoured value stocks over growth stocks in the U.S., and international stocks over US stocks on a macro global basis.    U.S. stock rotation: out of growth and into value :  As far as U.S. stocks, the culprit continues to be tech shares.  As the “l

Although Friday marked an improvement in US stocks, volatility increased further last week as the ROI on A.I. spend came back into investor's focus. Rotation from tech to value has been the theme so far of 2026. Meanwhile, European and Japanese stocks again outperformed US stocks. Gold rediscovered its mojo even as Bitcoin continues to plummet. Yields were slightly improved across the UST curve, high yield spreads widened, and the greenback was better bid.

Stocks and precious metals bounce around as more earnings come and go, the Fed holds rates steady as expected, and a new Fed chairman is nominated by Mr Trump.

Mr Trump was just where he wanted to be – the centre of attention at the #WEF in #Davos. Fortunately for investors, he climbed down from his "gotta have Greenland" position to reach some sort of undisclosed "deal" with the Europeans. Concurrently, JGB yields spiked with investors spoked by the budget outlook in Japan. Ultimately, US and European stocks ended the week lower, as Asian and emerging stocks drove gains. Gold continues to power ahead.

Most U.S. stock indices were weaker WoW, except for the small/mid cap Russell 2000 which has strung together some amazing gains YtD (+7.9%). Other global equity indices were generally positive. USTs lost ground, and both gold and Bitcoin pushed higher. This all happened in a backdrop in which the U.S. president introduced a series of populist and interventionist proposals that are drifting wider and wider from Republican principals.

There were more ideas coming from Mr Trump last week than seemed possible, a reflection of desperation as the affordability crisis continues to weigh on his administration and the approaching mid-term elections. Some ideas were simply ridiculous, but investors are used to it by now. This was reflected as risk markets remained solid, with several U.S. and foreign stock markets closing Friday at record highs.

The last two weeks were rather uneventful, so this is a quick summary of price performance in 2025, and a look ahead to 2026. Are we in a bubble and don't know it?

It was a holiday shortened, rather lacklustre week in markets. Good that 2022 is over. FY returns were poor across equities and bonds.