Recap | Week Ahead | Sentiment — CRA Financial, LLC

“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” – Warren Buffet

Last week's market recap:

The S&P 500 closed the week down -.02%. Year-to-date the index is up 12.96%
NASDAQ closed the week down -.17%. YTD the index is up 12.00%
U.S. Aggregate Bond index was down -.82%. YTD the index is up 2.36%
10-Year Treasury Rate increased, ending the week at 3.94% up from 3.80% the prior week
- Fed Funds Target rate remains at 5.25-5.50%
The 1-Year Treasury is yielding 4.49%
A 6 Month Treasury is yielding 4.99%

The week ahead:

CPI (Inflation Data)
PPI (Inflation Data)
Consumer Sentiment
Earnings: Home Depot, UBS, John Deere, Walmart, Alibaba, and more

Sentiment:

Volatility has returned to the markets. Last Monday saw a big decline for major indexes, but stocks recovered throughout the week and finished only fractionally lower.

Fundamentally, not much has changed. In the past few weeks we’ve had:

Disappointing AI growth forecasts from mega-cap tech.
- Warren Buffet sold some AAPL (He still owns a significant amount).

A jobs report that wasn’t great, but triggered the Sahm Rule.

And a Japanese Yen carry trade that forced selling from a few market participants.

The dominos started to fall and sentiment shifted, but fundamentals are still relatively strong. We never try to call a bottom (sell-offs can go lower), but for most long term investors, it’s usually a good time to buy when sentiment is low. Most investors should use volatility as an opportunity to diversify, harvest tax losses, and/or add to investment portfolios.

Source: JP Morgan Guide to the Markets

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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