2/8/2019 Weekly Update: Waiting for Catalysts
by David Rasmussen on Mar 1, 2019
S&P 500 +0.17%
10 Year Treasury +0.5%
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
All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results. Tax laws are complex and subject to change. Calibrate Wealth LLC, does not provide tax or legal advice and are not “fiduciaries” (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Calibrate Wealth. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account.
This material does not provide individually tailored investment advice. It has been prepared without
regard to the individual financial circumstances and objectives of persons who receive it. The strategies
and/or investments discussed in this material may not be suitable for all investors. Calibrate Wealth
recommends that investors independently evaluate particular investments and
strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a
particular investment or strategy will depend on an investor’s individual circumstances and objectives.
Investing in commodities entails significant risks. Commodity prices may be affected by a variety of
factors at any time, including but not limited to, (i) changes in supply and demand relationships, (ii)
governmental programs and policies, (iii) national and international political and economic events, war
and terrorist events, (iv) changes in interest and exchange rates, (v) trading activities in commodities
and related contracts, (vi) pestilence, technological change and weather, and (vii) the price volatility of a commodity. In addition, the commodities markets are subject to temporary distortions or other
disruptions due to various factors, including lack of liquidity, participation of speculators and
Foreign currencies may have significant price movements, even within the same day, and any currency
held in an account may lose value against other currencies. Foreign currency exchanges depend on the
relative values of two different currencies and are therefore subject to the risk of fluctuations caused by
a variety of economic and political factors in each of the two relevant countries, as well as global
pressures. These risks include national debt levels, trade deficits and balance of payments, domestic and
foreign interest rates and inflation, global, regional or national political and economic events, monetary
policies of governments and possible government intervention in the currency markets, or other