Market Snapshot November 26, 2019
Good Morning on this Terrific Tuesday,
The data today was mixed with consumer confidence dropping for the fourth month in a row. I am not calling the ball here on future growth, as I believe it is still ultra-dependent on the trade deal, but we (the consumers) are undoubtedly more in tuned with the economy than the pundits. History shows this over and over and over again. Reports out that Q4 GDP is expected to be weak. Hearing this from the Fed so early into the quarter is a bit curious… how weak will it be?
That all said, bonds are improving this a.m. likely on Mr. Powell’s speech from yesterday that the Fed is targeting 2% inflation and rates will stay put for a while. Why would that help bonds is a great question. Well, if we know the price of the bonds is not going to go down (pushing rates higher) it allows for more worry free investment. Sometimes the play is to not lose money. In truth I think the later part about not losing money is really the kernel today with low volumes and most trading desks being close to unmanned before the holiday. The improvements are of course welcome but they will be hard pressed to find their way into rate sheets until next week when trading is more normalized.
That is all for now, make today great!