Market Notebook
Discussion –
PRICE ACTION:
Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND, closed higher on the week.
TECHNICAL ANALYSIS:
SPY price action suggests that equities may be in consolidation.
Bonds appear to be established in a downward trend.
SENTIMENT:
Market participant sentiment suggests pessimism.
ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed.
Jobless claims are to be watched as an important indicator of a potential recession. Thus far, jobless claims are not indicative of a near-term recession.
From a fundamental perspective, the downward trend in bonds seems limited by the fundamentals associated with inflation and recession. If inflation comes down or a recession occurs, the downward trend in bonds could be broken. Potentially, sharply broken.
As a side note, remember high-yield bonds are different animals and will trade more like risk assets.
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.