2/8/2019 Weekly Update: Waiting for Catalysts

Weekly Recap                                                                        

S&P 500                +0.17%

10 Year Treasury   +0.5%

Gold                      -0.2%

Volatility              -0.56%

Weekly Update: Waiting for Catalysts

 Good afternoon and happy Friday!  Both bonds and stocks closed marginally higher for the week.  There was dearth of market moving catalysts.  The market is looking for direction after the strongest monthly gains in nearly 8 years experienced in January.  The S&P 500 is pausing just below its 200-day moving average, which historically has marked an inflection point and key line of resistance. 

In the near term the biggest market driver will likely be progress, of lack thereof, in our trade negotiations with China. Larry Kudlow commented Thursday, that a “sizable distance” remains between the U.S. and China in the protracted trade negations.  Markets responded negatively to these comments, but the selloff was shallow and short lived.

The question remains can the risk rally continue into the rest of 2019?  That remains to be seen.  The US economy has entered late cycle.  This phase is usually marked with higher levels of asset price volatility.  Our portfolios are prepared for this volatility and will adjust to market conditions as necessary. 

Zach and Dave

Calibrate Wealth
515-371-5316  

https://www.calibratewm.com/blog-01

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