Dear Quaint Community,
As we close another week, we reflect on the market dynamics and our model's performance, which has navigated through a mix of challenges and opportunities.
Weekly Performance Overview:
Day 1: Model: +0.69%, Benchmark: +0.92%
Day 2: Model: +0.73%, Benchmark: +1.19%
Day 3: Model: -0.93%, Benchmark: -0.05%
Day 4: Model: +0.33%, Benchmark: -0.38%
Day 5: Model: +0.73%, Benchmark: +0.95%
Total Weekly Returns:
Model: +1.54%
Benchmark: +2.65%
Cumulative Returns:
Model: -0.41%
Benchmark: 6.96%
Market Recap and Insights: Last Friday's market experienced indiscriminate selling in tech, significantly impacting major tech stocks. This week's market sentiment was significantly buoyed by strong earnings from mega-cap tech companies, despite earlier concerns.
Earnings Highlights:
META: Faced a decline after announcing increased expense guidance, which initially dampened sentiment.
NVDA, SMCI, AMD: These stocks rallied, benefitting from the broader market’s pivot towards higher AI spending.
Microsoft (MSFT): Reported impressive earnings with a notable 31% revenue growth in Azure, surpassing expectations.
Google (GOOGL): Also beat earnings expectations, further announced a significant dividend and a $70B stock buyback, enhancing investor confidence in the tech sector.
Despite last week's tech sell-off, recent earnings reports underscore a strong commitment to AI investment, reinforcing the AI secular growth narrative. This reassurance is vital as it suggests continued investor confidence in AI and tech sectors, despite some intermittent volatility.
Looking Ahead: Given the resilience seen in AI and tech investments, our outlook remains cautiously optimistic. We anticipate that the momentum from positive earnings may extend into the coming weeks, potentially offering further growth opportunities for our model.
As always, we appreciate your trust and engagement. Quaint remains dedicated to providing you with thoughtful analysis and strategic guidance to navigate these complex market environments.