Market Notebook
Discussion –
PRICE ACTION:
Equity prices, as measured by the ticker SPY, closed higher last week, while bond prices, as measured by the ticker BND, closed lower.
SPY +0.57%
BND -0.03%
TECHNICAL ANALYSIS:
SPY price appears established in an upward trend.
BND price appears established in an upward trend.
SENTIMENT:
Market participant sentiment appears closely tied to the expected frequency and pace of Federal Reserve rate cuts.
ECONOMY AND FUNDAMENTALS:
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. To avoid recessionary conditions, the Federal Reserve will have to get the timing and size 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.