Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY closed higher on the week while BND prices closed slightly lower but mostly unchanged.

SPY    +2.65%
BND    -0.08%

TECHNICAL ANALYSIS:
SPY appears established in an upward trend while BND price action suggests wide-ranging consolidation.

SENTIMENT:
Earnings reports continued to contribute to increased volatility. Sentiment remains generally positive.

ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook paint a picture of mostly normal economic conditions, with inflation slowly coming under control.

Throughout the tightening cycle, jobless claims have never indicated recession by our measure. In fact, jobless claims suggest that “normal” market conditions will likely continue over the short term.

Although indicators suggest fundamentals are improving, it is worth noting that market participants should be on the lookout for recessionary conditions following the first rate cut after a tightening cycle. It seems likely that the first rate cut will happen in late 2024 or early 2025. To avoid recessionary conditions, the Federal Reserve will have to get the timing of rate cuts exactly correct. 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.