Markets are displaying uncertainty in a number of criteria not the least of which are oil prices, economic data, geopolitical events and of course the U.S. election challenges.
The stagnation (in our opinion) has left investors in a quandary as to whether to add to positions, reduce positions, or just step aside for now. I prefer the "step side" approach. Now for some actual information...
The 30-year Treasury bond closed at 166 06/32nds, down 26/32nds as yields rose slightly on Friday. The yield rose 4.5 basis points, but for the week lost 4.4 basis points. Global equity markets recovered on Friday following oil once again, which was up 6.6%. The loss in Treasuries reflected a transition from the "safe haven" of Treasuries to equities, which has suffered as of late. Volumes in general were low as investors remain unconvinced as to potential direction. We favor the sidelines as well.
The Dow Jones industrials closed at 17,575.96, up 35 points, but gave back much of the early gain of 150 points. For the week the Dow lost 1.2%. The S&P 500 closed at 2,047.60, up 5.69 points tied to the 2% gain in the energy sector and the 6.6% rise in crude oil prices. For the week the S&P lost 1.2%. The tech-heavy Nasdaq closed at 4,850.69, up 2.32 points after being back and forth over the line all day. For the week the Nasdaq lost 1.3%. We remain convinced that the global economic weakness will result in another recession and would avoid equity markets.