NEW YORK (TheStreet) --A lot of risk came off the table last week as investors reacted to a multitude of geopolitical events.
There were flare-ups around the globe, from Israel and Hamas to Ukraine; the situation in Iraq continues to be a cause for concern. Last week, Europe was also back in the news when Portugal's biggest bank, Banco Espiritu Santo, appeared to be on the verge of collapse.
As a result, gold, which I view as a "turmoil" indicator, rose last week and investors also piled into another safe haven, U.S. Treasury bonds. The exchange-traded fund proxy SPDR Gold Trust (GLD) was up 1.47% for the week and iShares Barclays 20 Year+ Treasury Bond (TLT) rose 2.62%. The yield on the 10-year Treasury also declined last week to 2.52% from 2.65%.
Data from Best Stocks Now App
With all the turmoil in the world, it is really no wonder than gold is moving higher and high-risk stocks are going down. Specifically, U.S. small-cap stocks were hit the hardest, with the S&P 600 Smallcap Index down a whopping 3.67%.
Small-caps are a proxy for the high-risk, aggressive-growth area of the market. After being up almost 40% last year, small-caps are now flat for the year.