Current market update
We saw a lot of volatility in the markets last week but with a strong rally on Friday, the S&P 500 was down just under 1/2 of a percent from where it started Monday. While that’s not what we are looking for, it does show the strong support levels. The main cause was the GDP report that showed a tepid economy in the first quarter.
Bounce back indicators
There was this same kind of fist quarter last year but then the economy bounced back in the second quarter. Upcoming data will help us determine if that could happen again. We will start to see some of this data near the end of the week with the Jobs Report. Other indicators will be the earnings reports that are still coming out. Even though expectations where lowered, many companies are exceeding expectations.
Possible Market Tailwind
Although the news media is not reporting on the rising level of corporate debt, it continues to be something we are watching very closely. New corporate debt tells us that companies are being more active by borrowing money to expand their business. This has a rippling effect in the economy and is leading consumers to be more confident to borrow money themselves. With interest rates so low, this could be a possible market tailwind.
Investors should watch
Investors should pay attention, as we are, to how this money is being spent, how it is working, and how many times it changes hands. This could create sustainable market growth. We will keep you updated on this as the data comes out as the year progresses.
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Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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