Market Snapshot December 3, 2018
Good Morning on this fantastic Monday,
Lots of news and goings on over the weekend. George HW Bush passed away at 94. Irrespective of partisanship, he was a remarkable man. Aside from politics, government service, and a successful business career, he also took the time and was thoughtful enough to write letters to his wife and children throughout the years. Note to self, be better. President Trump is touting the deal he made with China at the G20 Summit as being the biggest deal ever. Pretty bold statement, although other than a few details on the tariffs being put on pause for 90 days and asserting China will buy more US cars, Mr. Trump wont share any more details until after Mr. Bush’s funeral. Stocks are screaming higher on the news although they have pared back about half since the open. Bonds are doing well, too. It is a bit surprising with equities doing so well, but maybe the other happenings around the world as well as a kinder gentler Fed admitting there is no inflation are giving bonds a boost. It is worth noting that the yield curve is flattening some more which is concerning. On the news front, construction spending missed expectations and last month was revised downward, from a positive reading, to a negative one. ISM was up, but construction spending will have a far greater impact on the economy. The 10-yr is again teetering with 3.00%. If we fail to break it, I would think the better choice will be to lock.
Make today great!