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:
SPY and BND appear established in an upward trend.

SENTIMENT:
Market participants seemed more focused on Turkey than on trading during the holiday-shortened week. The idea that the Federal Reserve will have to moderate the pace of interest rate hikes seems on the way to becoming the consensus view. Slowly, as the path regarding interest rates becomes clearer, corporate profits are likely to become the focus of market participant sentiment. Continued high inflation combined with tighter monetary policy will have an effect on profits. How much of an effect is the question.

ECONOMY AND FUNDAMENTALS:
Most, but not all, economic indicators followed within the Market Notebook suggest a recession is possible or underway.

NEXT WEEK:
Economic data releases during the week, including the jobs report on Friday, may contribute to potential volatility. 

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.