Weekly Market Review - August 22, 2019

Chad Hassinger |
Categories
Tax Planning

By Bradley J. Rathe, AIF®
Chief Investment Officer

August 22, 2019

"It's not the load that breaks you down, it's the way you carry it." Lena Horne

Weekly look back:
  1. Consumer Inflation picked up last month, with the year over year headline now at 1.8% (2.2%, excluding food and energy), up from 1.6%.  It looks like some of the tariffs are starting to come through to the consumer.
  2. Confidence is waning. Capital is driven significantly on optimism for the future and the investment that it brings.
  3. Industrial Production fell, a result of manufacturing slowing down in response to trade tensions.  Tariffs are affecting business investment and manufacturing the most.
Weekly look ahead:
  1. Housing data has started to pick up as US interest rates fall.  The 30-year Treasury dropped below 2% for the first time ever, eclipsing the previous low of 2.09% back in July 2016.
  2. FOMC minutes are expected to confirm the statement from Mr. Powell of the interest rate readjustment and give an indication of the pressure on the board to decrease rates on September 18th.
  3. Slow week for data as the 3rd week of August is normally a slow market week.  Earning season is wrapping up and the second quarter looks to see an increase of around 2% in earnings for the S&P 500.
World Macro highlights for this week: 

Wednesday: FOMC Minutes, Existing Home Sales
Thursday: Leading Indicators
Friday: New Home Sales

2019 Yearly Index Returns as of 8/16/2019

S&P 500 

16.66%

Europe Equity

10.43%

Emerging Equity

5.23%

US 10 Yr

-1.16 bp

US Small Cap Stocks

11.69%

 

Graph Of The Week

The Federal Reserve adjusted the interest rate mid-cycle. Is it enough? Rates peaked at 2.5%, how low do they go now?

Unless otherwise expressly indicated, the opinions or views expressed in this article are the author's own and do not reflect, and may differ from, the opinions or views of Strategic Financial Group, LLC or others within Strategic Financial Group, LLC, including its officers, managers, owners, employees or other service providers.