Weekly Update 2/22/2019 Markets Meander Higher
by David Rasmussen on Mar 1, 2019
S&P 500 +%
10 Year Treasury +%
Weekly Update: Markets Meander Higher
It seems like this has been the longest, most snowy/icy winter I can remember. We are ready for spring.
It was a week of slumbering hibernation for the markets. Volatility continued to plow downward while equities and bonds both meandered higher. As we mentioned last week, according to a myriad of technical measures, stocks appear overbought. For example, the percentage of stocks within the S&P 500 above their 50dma is now above 90% (chart below). This is not to say that stocks always pull-back while such conditions are present; however, the magnitude of returns to the upside are usually muted over the following months.
In the final week of February markets will look for trade developments as the March 1 trade deadline for increased tariffs approaches. If we do get a deal, will we see a sell the news reaction or continuation of this near-term rally? It is important to keep the long-term in perspective and observe the short-term gyrations and news with only passive interest. Hasty action within the realm of investing and financial planning is most often unwise.
Enjoy your weekend.
Zach and Dave
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