Weekly Market Review - September 27, 2019

Weekly Market Review - September 27, 2019

by Chad Hassinger on Sep 27, 2019

Finance

By Bradley J. Rathe, AIF®
Chief Investment Officer

September 27, 2019

"Life is ten percent what you experience and ninety percent how you respond to it." Dorothy M. Neddermeyer

Weekly look back:
  1. The Federal reserve cut interest rates last week even as the board had some dissents about the decision, some for more and some for less.  The Fed is more worried about the sluggish international economies and how they may start to slow down the US macro strength.
  2. Congress started formal impeachment procedures against President Trump.  The last impeachment was for then President Clinton and the market reacted very calmly during the procedures and with the final verdict.
  3. As we have been mentioning the past few weeks, the lower interest rates have given the housing market a boost, with both existing and new homes showing strong sales.
Weekly look ahead:
  1. We have Confidence and Sentiment numbers this week.  These indicators are important because when business leaders are confident of the future they can initiate long term plans.
  2. GDP is expected to come in at 2.0% for the second quarter.  This is down from earlier in the year.
  3. Manufacturing has been slowing and Durable goods are expected to decrease by 1.2%.  Consumer spending is holding up the economy at the current time.
World Macro highlights for this week: 

Tuesday: Consumer Confidence
Thursday: GDP, Corporate Profits, Pending Home Sales
Friday: Consumer Sentiment, Personal Income and Outlays, Durable Goods

2019 Yearly Index Returns as of 8/30/2019

S&P 500 

20.93%

Europe Equity

16.83%

Emerging Equity

9.89%

US 10 Yr

-0.95 bp

US Small Cap Stocks

16.83%

 

Graph Of The Week

This is a 10 year graph of the Fed Funds rate. The Fed lowered the rate to 1.75 - 2% last week from 2.25% - 2%. 

 

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.