Market Notebook

by | Jun 11, 2023

Discussion – 

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

SPY price appears established in an upward trend.

BND price appears established in a downward trend.

Recent price action suggests market participants see little downside risk for equities. Perhaps better put, they view the downside risk as acceptable given current price levels. It is useful to note that market participants typically weigh downside risk versus opportunity risk. If one is currently invested, it is possible that the price may move against you, hence downside risk. If you are not invested, it is possible that the price will move higher before you can get in, causing lost opportunity, hence opportunity risk.

Economic indicators within the Market Notebook remain mixed. Real economic activity will likely slow over the next few months as the Federal Reserve works to contain inflationary pressures.

Jobless claims are to be watched as a key indicator of a potential recession. Thus far, jobless claims are not indicative of a 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.