Waiting For Fed & Trade Tension Direction

From trade tension to the Fed, the best way to describe this week’s market movement is simply with the word patience.

The Fed Slowing Economy

We learned from the Fed that they are watching economic data to point toward any interest rate changes or balance sheet changes needed ahead.

This is welcome news to investors.

Economic data was released Thursday that showed slowing durable goods orders. This points to some slowing in the economy.  This has been a concern for many analysts worried that a recession could be upcoming in the months ahead.

The good news is there isn’t much inflation.

In 2018, when the Fed was raising rates aggressively they were trying to tame inflation from rising out of control so it seems that concern, for now, has eased.

What are Durable Goods Orders?

Trade Tension With China

The other big item this week regarded global trade tension with China.  We know there were talks scheduled to happen but we haven’t heard of any certain progress made. This remains to be an unknown.

These two big items didn’t bring much change to the market this week.  Investors are really waiting to hear about further economic data and to hear about progress being made with China.

With a week of little market movement it reminds us to remain patient.  We continue to watch for signs in the market that may warrant changes needed ahead.

Wondering how this affects your investments? Schedule a call with Michelle and Steve to discuss your portfolio today.