Global Markets Trends & Review Week Ending April 19, 2019 Review of global markets starting with the US Performance chart of world markets Chart of China Large-Cap (FXI) Performance chart of major US market sectors Dow Jones Railroad Index Summary Overview To Date: The US and many World markets were closed on Friday for Good […]

The World markets continue to grind their way higher. The S&P 500 closed last week just below its all-time high made in October. Riskier US small-cap stocks and riskier world markets continue to lag behind major indices and large-cap stocks as in the S&P 500.

Overview To Date: Most markets have been in a rolling correction since February with a sharp selloff the first week in March. As mentioned by commentators, the correction may have been triggered by the flattening of the US Treasuries yield curve. There a brief period where the yield curve inverted, shorter-term rates become higher than longer-term rates. When yields become inverted, market investors become concerned about an economic slowdown not only in the US but worldwide.

Last Friday (March 29, 2019) was the last day of the first quarter of 2019. Good time for a summary of the last two quarters. The US markets went into a major correction starting October 2018 culminating in the hard selloff on December 24, 2018. The SP500 lost almost 20% by the December lows. Other markets were down even more. The S&P 600 Small-Cap lost almost 28%. This was a significant correction over three months. As mentioned before, world markets have been major corrections, or bear markets for some time.

verview To Date: Diffidently have been seeing a bifurcated market. Technology and related sectors have made new recovery highs, while small and mid-cap US stocks have shown weakness. Friday’s selloff was an 80% down volume day and was attributed to US Federal Reserve lowering its economic forecasts for later in 2019. The financial markets took those forecasts and dropped the US and world bond yields which rippled through the markets on Friday. The yield curve is pretty much flat. The spread between the US Treasury 10-year and 3-month has gone negative for the first time since 2007. This is viewed by the experts as a weak forecast for the US economy later in 2019. Especially hard hit last week with the flattening yield curve was the financial and banking sectors.

Overview To Date: Two weeks ago, someone rang a bell, and the markets sold off. The selloff was attributed to “bad news” and was the correction expected by so many since the December 2018 lows. Last week was a quick turnaround, and the markets rebounded, even though there was much of the same “bad” news. One signal of the underlying market trend is how markets handle the news, both good and bad. The markets dealt with the bad news and rallied, another confirmation of an “uptrend” in the markets.

Overview To Date: As mentioned in previous weeks, the markets have been mixed doing a correction in-place but overall up. Someone rang a bell this week, and makings of correction started. This is the first major pullback the markets have encountered since lows in December. The selloff impacted almost all US and world markets and US sectors.

Overview To Date: The US and world markets have continued to rally from the December 2018 lows. The action over the last few weeks has been mixed at times but overall up. Still expecting some kind of pull back but the markets are doing more of a correction in place.

Overview To Date: The US and most of the world markets have continued to rally from the December 2018 lows. The action over the last few weeks has been mixed at times but overall up. What has been a surprise is that some kind of pullback or correction would be expected, after the extended rally, but the markets have continued higher.