By Justin Turner CIM, DMS®, CFP®
US
markets made new highs but then sold off leaving many questioning whether a
bigger correction could finally be in order. Surprisingly though the
market reversed course on Friday and finished strong. Unfortunately Canadian
Markets did not participate much in the rebound and finished the week with a
slight loss. Much of the volatile week can most likely be attributed to
the 10 year US Treasury rate dipping below 2.50% for the first time in quite a
while, which combined with some of the strong economic data has left analysts
scratching their heads. This has investor’s worried as a falling 10 Year
rate generally points toward weaker expectations for the economy and for
inflation and contradicts the economic data we have seen lately.
Perhaps
this is just another head-fake and the S&P 500 will test 1900 once again in
the very near future. Whichever way the market moves to start the week could be
a strong indication of where we are headed next.
