Market Notebook
Discussion –
PRICE ACTION:
Equity prices, as measured by the ticker SPY, closed lower while bond prices, as measured by the ticker BND, closed higher over the last week.
SPY -2.42%
BND +0.28%
TECHNICAL ANALYSIS:
SPY price appears to be trending upwards.
BND price appears to be trending upwards.
SENTIMENT:
A fresh round of tariff threats against China caused equity market participants some consternation on Friday. The sell-off in equities extended to crypto assets, with several experiencing large intraday drawdowns.
As risk asset prices move away from standard measures of central tendency, they become what I would call “fragile”, meaning there is a higher likelihood of significant price changes over short periods of time.
ECONOMY AND FUNDAMENTALS:
Economic fundamentals remain positive, with data suggesting the U.S. economy remains resilient. The Federal Reserve appears to be acting appropriately with two goals in mind: to keep inflation under control and support real economic activity.
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.