The Market This Week

The markets this week experienced a rally early in the week, followed by a sell off later. This was the cause of the growing concern of whether a “soft landing” could merely be a great slowdown than anticipated.

Recap of weekly performance:
DJIA- Down 52.67 or -0.46%
S&P 500- Down 5.09 or -0.39%
NASDAQ- Down 16.66 or -0.75%

The markets on Friday saw a small buying spree that lifted the overall markets above the intra-day lows, which could be encouragement for Monday’s open. The debate still rages on whether the slowing economy is good because it eliminates the likelihood of Federal Reserve interest rate increases, or as stated previously this could be a greater slowdown than anticipated. The jury is still out on this issue, and only time will show whether the slowdown will be large enough to curb raises in interest rates, but low enough to prevent a large scale slowdown that will cut corporate profits and weaken the overall economy. Just speaking from history, a “soft landing” has been very rare and usually does not occur, but it has, thus sparking hope in investor’s minds.

Crude oil was down on the week, closing at $60.55/barrel down $3.47 for the week. Crude actually hit in intra-day trading below the benchmark $60/ barrel which is great news for consumers as well the economy. As the hurricane season begins to wind down, there has been no development in the Atlantic that is threatening to the coastal cities and infrastructure in the Gulf of Mexico, although the official end of the season is November 1.

The markets are still trying to digest the current economic condition we are in, and we expect further volatility in the near term because of this. However, we must remain confident in our investing decisions, while still keeping our eyes out for further opportunities. Until next week have a productive and profitable week!