Market Notebook

by | Jan 7, 2024

Discussion – 

Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND, closed lower on the week.

Both SPY and BND might be considered in an upward trend.

Last week’s pullback in prices may simply be the result of coming too far too fast. The general perception is that the Federal Reserve will shift towards an accommodative policy from a restrictive policy. Prices may well shift with the prevailing expectation for the rate of change. The faster interest rates are expected to change, the more rapid the change in price. During the last week, it seemed like investors were adjusting their expectations for the rate of change.

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.

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.