Market Notebook
Discussion –
PRICE ACTION:
Equity prices, as measured by the ticker SPY, closed higher last week, while bond prices, as measured by the ticker BND, closed lower.
SPY +0.26%
BND -1.50%
TECHNICAL ANALYSIS:
SPY price appears established in an upward trend.
BND price appears established in an upward trend.
SENTIMENT:
An unexpectedly positive jobs report caused investors to rethink the Federal Reserve’s projected pace of rate adjustments. The positive jobs report suggests that the economy is stronger than previously thought, and therefore, rates may be lowered more slowly than previously thought.
ECONOMY AND FUNDAMENTALS:
Throughout the tightening cycle, jobless claims have never indicated a recession by our measure. We will continue to monitor weekly jobless claims closely.
Market participants should be on the lookout for recessionary conditions following the first rate cut after a tightening cycle. Thus far, the Federal Reserve has managed the economic cycle well.
All the best during the week ahead!
Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.