Recap | Week Ahead | Record Highs with Low Confidence

“Someone always knows more than you and is likely trading on that information. Be humble. Take losses early. Let winners run.” – Nick Colas, DataTrek Research

Last week's market recap:

The S&P 500 closed the week up .89%. Year-to-date the index is up 18.61%
NASDAQ closed the week down -.38%. YTD the index is up 22.27%
U.S. Aggregate Bond index was up .82%. YTD the index is up .82%
10-Year Treasury Rate decreased, ending the week at 4.18% down from 4.28% the prior week
- Fed Funds Target rate remains at 5.25-5.50%
The 1-Year Treasury is yielding 4.84%
A 6 Month Treasury is yielding 5.18%

The week ahead:

Jerome Powell remarks
GOP Convention
Retail Sales
Earnings: Goldman Sachs, Bank of America, Morgan Stanley, Netflix, Johnson & Johnson, etc.

Markets:

Last week, U.S. stocks hit record highs and the 10 year treasury yield dropped. We saw increased volatility in both small caps and tech as inflation data cooled more than expected.

Consumer Sentiment Remains Low:

With major indexes at or near all-time highs, it is interesting to see confidence remains low. When we dissect the major indexes, we’re seeing two stories which can help explain part of the pessimism. The overall indexes are strong, but we’re seeing considerable weakness at the individual level. Look at the Nasdaq… The Nasdaq has only seen a -7% drawdown this year, but the average YTD company drawdown within the Nasdaq has been over 38%!

As always, let us know if you have any questions.

Best,

CRA Investment Committee

Matt Reynolds CPA, CFP®

Tom Reynolds, CPA

Robert T. Martin, CFA, CFP®

Gordon Shearer Jr., CFP®

Jeff Hilliard, CFP®, CRPC®

Joe McCaffrey, CFP®

Phillip Tompkins, CFP®

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