facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Weekly Market Update with Brian Ransom, 4 March 2022 Thumbnail

Weekly Market Update with Brian Ransom, 4 March 2022

Welcome to the weekly market update from Signature Wealth Management. I’m Brian Ransom, Research Director from Signature Wealth and here’s what happened in the market this week.

Volatility continues on Wall Street this week. As the world awaits news from Ukraine, the market continues to make a series of lower highs and lower lows, signaling that we are in a clear short term down trend.

Eastern Europe remains the dominant news item of the week. Russian forces continue to push into Ukraine but the Ukrainians are bravely fighting off the Russian advance on Kyev. Currently, over one million refugees have fled the country. In light of the war in Eastern Europe, Federal Reserve Chairman, Jerome Powell announced the Federal Reserve would likely increase the Fed Funds rate by 25 basis points in March, lower than the 50 basis points predicted by the market. The market responded positively to the news.

With the rising risks in Eastern Europe, it’s time to review a few markers of economic and financial health. This is the performance of S&P 500 consumer staples relative to consumer discretionary stocks. When this graph is moving down and to the right, investors are risk on, choosing to invest in riskier discretionary stocks like vehicle manufacturers and movie theaters in lieu of safer stocks in the staples industry. When this graph is moving up and to the right, staples are out performing and investors are risk-off, choosing to invest in the safer cash flows from grocery stores and food suppliers. Currently, staples are outperforming, unsurprisingly. So, investors are currently risk-off.

The Semiconductor index is a great measure of health within the 21st century economy. Typically, when there is economic weakness, the semiconductor index falls relative to the S&P 500 like we saw at the end of 2018. During this last bit of volatility, the index did fall initially, but it has recovered somewhat since the war initially started. This indicates the economy may be healthier than the headlines are reading.

Lastly, the small cap index demonstrates performance of smaller firms relative to the mega-cap firms. A healthy economy and market typically shows high levels of performance from the smaller publicly traded firms. Since the beginning of 2021, market returns have been dominated by the mega-cap firms, signaling a gradually weaker market. However, it appears that trend has reversed over the last few weeks once again signaling the market and economy may be healthier than the headlines are indicating.

For more information on this topic or a variety of other topics including market updates, financial planning, and wealth management please like, subscribe, and follow. Don’t forget to check out our new podcast Up and to the Right! New episodes for Up and to the Right drop on a bi-weekly basis on all your favorite podcasting apps. I will be taking next week off so I will see you in two weeks!


1.FactSet Research Systems. (n.d.). S&P 500 (Interactive Charts). Retrieved March 4, 2022, from FactSet Database.

2.FactSet Research Systems. (n.d.). Equal Weight Consumer Staples relative to Equal Weight Consumer Discretionary (Interactive Charts). Retrieved March 3, 2022, from FactSet Database.

3.FactSet Research Systems. (n.d.). SOXX Semiconductor Index relative to S&P 500 (Interactive Charts). Retrieved March 3, 2022, from FactSet Database

4.FactSet Research Systems. (n.d.). S&P 600 relative to S&P 500 (Interactive Charts). Retrieved March 3, 2022, from FactSet Database

Signature Wealth Management Group is registered as an investment adviser with the SEC. Signature Wealth only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. 


Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. 


Information contained herein does not involve the rendering of personalized investment advice, but is limited to the dissemination of general information. 

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The S&P SmallCap 600 is an index that measures the performance of 600 different publicly traded small-capitalization (small-cap) stocks in the U.S. equities market. 

Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. The use of words such as “will”, “may”, “could”, “should”, and “would”, as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. 


Information is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein.

The S&P U.S. Style Indices measure the performance of U.S. equities fully or partially categorized as either growth or value stocks, as determined by Style Scores for each security. The Style series is weighted by float-adjusted market capitalization (FMC), and the Pure Style index series is weighted by Style Score subject to the rules described in Index Construction.

All information presented prior to an index’s Launch Date is hypothetical (back-tested), not actual performance. The Index returns shown do not represent the results of actual trading of investable assets/securities. S&P Dow Jones Indices LLC maintains the Index and calculates the Index levels and performance shown or discussed, but does not manage actual assets. Please refer to the methodology paper for the Index, available at www.spdji.com for more details about the index, including the manner in which it is rebalanced, the timing of such rebalancing, criteria for additions and deletions, as well as all index calculations.