Investing

Market Wrap-Up: Week of 4/28/2019

Market Wrap-Up: Week of 4/28/2019

Markets Year-to-Date: DJIA: +14.93%/ S&P 500: +18.5%/ Nasdaq: +23.99%

Data Dump: Consumer confidence is up (+5 points), businesses are hiring, wages are moderately increasing (+2.9%), and unemployment has decreased to 3.6%.

Blurred Lines. The Federal Reserve met on Wednesday and decided not to make a change to their interest rate target (target remains at 2.25% to 2.50%). This sent the markets in to a tailspin with the S&P ending the day down -0.75%. Blame it on poor communication. The Feds statement after the meeting seemed to indicate the possibility of a rate cut as core inflation has declined and is now running below 2%. However, in Chairman Jerome Powell’s post-meeting press conference, he repeatedly stated that “the decline in core inflation is due to ‘transient’ factors”. Essentially, he does not see the decline in inflation continuing which supports his wait and see attitude towards interest rate changes.

The Fed’s job, and it’s autonomy, has not been made easy by President Trump, who continues to politicize monetary policy.

Momentum Investing: In 90 Seconds or Less

Momentum Investing: In 90 Seconds or Less

Think of momentum investing as kind of like being the New England Patriot’s of investing. The premise is an extremely straightforward one. Winner's keep winning (and losers keep losing).

There are as many ways to use this strategy as there are ways to bake a cake. So let's simplify things by looking at one of the most common ways people use momentum strategies--Moving Averages.

MARKET WRAP UP: GOVERNMENT SHUTDOWN EDITION

MARKET WRAP UP: GOVERNMENT SHUTDOWN EDITION

What do superheroes and online video streaming services have in common?

They both have movies nominated for Best Picture at the Oscar’s this year. Which, we’re only 30 days away from. That’s 5 days less than the U.S. Government Shutdown, which entered its 35th and final day on Friday. This week will also mark the fifth straight week of gains for the Dow.


Government shutdown by the numbers

  • 10.3% - The amount the S&P 500 has risen since the beginning of the shutdown.

  • 21 - The number of days the previous record holder lasted.

  • 0.13% - The estimated amount the shutdown lowered quarterly GDP growth per week.