Closing Thoughts for the Week

And just like that, we’re back in a period of great uncertainty. Not surprisingly, the markets didn’t take the news well. When stocks, bonds and the dollar are all declining at the same time, there’s some sort of disconnect happening. It’s important to note here that Japan could be ready to make the situation even worse. This past week, it looks like investors got the rug pulled out from under them again.

The markets continue to breathe a sigh of relief as trade war risks still appear to be contained and inflation readings came in below expectations. While large-caps and tech stocks led the way for the week as a whole, rallies from utilities and Treasuries during the latter half of it demonstrate that investors remain weary of getting too optimistic.

Investors seem to be settling into a new normal post-Liberation Day, but there are also indicates that their guard is still up. The Fed delivered a message following their meeting this week that was pretty much exactly as expected. At the earliest, I think that pushes the first potential rate cut until the middle of the summer, if not later. Overall, I think we need to keep watching the data that’s coming in.