Market Notebook

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Win Win Week for Bonds and Global Equities

The bond complex remained strong during the last week, while global equities rebounded nicely, setting up a win win scenario for diversified investors. Significant volatility was present in markets last week, however, it was “positive” volatility. Investors seldom complain about volatility to the up side.

Volatility Driven by Brexit and U.S. and China Trade Likely to Continue

Investors might expect both Brexit and U.S. and China trade talks to remain in the news in the coming weeks driving short term market reactions. Consider that both Brexit and U.S. and China trade relations are subjects well known to market participants and thus a wide range of outcomes are “priced in” the markets. Long term investors typically have little to fear from information that is widely known. The above, coupled with the fact that real economic conditions in the U.S., as evidenced by an increase in The Conference Board’s Leading Economic Index in July, point to a market that is favorable for investment. Yield curve inversion, by itself, is not a harbinger of impending recession, although it is cause to remain vigilant.

New Value Factor Candidate Stocks Posted to Market Notebook

The recent influx of Q2 fundamental data has caused some fresh names to appear within the list of Value Factor Candidate Stocks. Some of those stocks may be worth an additional look.

 

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