Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND, closed higher on the week.

TECHNICAL ANALYSIS:
Both SPY and BND might be considered in a newly established upward trend.

SENTIMENT:
Market participant optimism continues on interest rate expectations. Participants generally believe a soft landing is underway in the U.S. economy.

ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed.

Current fundamentals suggest a soft landing in the U.S. economy is underway. Unfortunately, Federal Reserve actions influence the real economy with a significant lag; therefore, it is likely too early to tell whether recent price action represents the beginning of a new bull market in equities or a retracement within a larger downward trend.

The Conference Board’s Leading Economic Index declined yet again in November while the trailing six-month decline moderated. The LEI describes an economy with continuing challenges but with challenges that are easing.

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.

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.