Market Notebook
Discussion –
PRICE ACTION:
Equity prices, as measured by the ticker SPY, and bond prices, as measured by the ticker BND, closed higher last week.
SPY +0.86%
BND +0.03%
TECHNICAL ANALYSIS:
SPY price appears established in an upward trend.
BND price appears established in an upward trend.
SENTIMENT:
“Risk On” sentiment continues as market participants believe the Federal Reserve is successfully executing an economic “soft landing” as interest rates ease.
ECONOMY AND FUNDAMENTALS:
The Conference Board’s Leading Economic Index declined in September, suggesting continuing headwinds for the U.S. economy in the near term.
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.