Ah, the end of summer………..It has been our experience that the last week of summer usually produces slow financial news. This of course is not a hard and fast rule; however we have experienced this phenomenon once again in 2023.
Although there was some news this past week, it was more of the ho-hum variety but let’s discuss them anyway.
Due to a jump in unemployment this week, the Federal Reserve is not expected to raise interest rates at their meeting later this month. The Labor Department issued its August unemployment data, and it showed the rate of those not working rose to 3.8%. Wage growth slowed and non-farm payrolls rose more than expected. This type of data makes a strong case that the Fed is winning its battle against inflation.
Tesla was the most active stock on Wall Street this week with $32.6 billion worth of shares exchanged during the session. Share prices of Tesla dropped 5% due to the company cutting prices for its Model S and Model X.
Of the 11 sectors found in the S&P 500, 6 advanced, with energy being the leader up 2.05%. The Materials sector followed next, moving up 1.01%.
The S&P 500 ended the week up +2.50% ending Friday at 4,515. The Dow Jones rose 1.43% by weeks end at 34,837 and the NASDAQ saw an upward climb of 3.25% closing at14,031. Small Caps closed Friday at 1,922 up +3.63%.
The Small Cap markets are beginning to show signs of strength – a bullish signal we are watching intently.
We will soon witness Airbnb and Blackstone joining the S&P 500 on September 18th. Additions and subtractions on the major indexes are somewhat rare so this is a bit of an historic happening.
US Treasuries closed Friday with the 2-year bonds at 4.88%. 5-year bonds at 4.30% and 10-year bonds at 4.18%. We still see an Inverted Yield Curve.
Investor concerns are nearly non-existent by the way the Volatility Index (VIX) is broadcasting. The VIX closed at 13.09 on Friday, far below the number 20, which would show growing investor concerns about the market.
Based on a fairly quiet week last week, this is a short report. BUT – there are changes and opportunities that have presented themselves in that quiet sort of way………..
When GaneWisdom/Market Edge went live in August 2022, the goal was to provide our subscribers top-tier market analysis and outlook to those with qualified accounts such as: IRAs, ROTH IRAs, 401Ks, and 403Bs. Our desire was to make this service affordable to anyone. Instead of paying thousands of dollars, or a percentage based on investment assets (which is how Guy managed his client’s money as a Registered Investment Advisor) GaneWisdom/Market Edge charges a very affordable $200 per year. Our subscribers now include those with non-qualified accounts as well as financial professionals. Our market analysis consists of market indicators, trends and strategies which allow our followers to avoid large losses usually associated with the traditional ‘Buy and Hold’ method. Our results speak for themselves and each of our Posts since our inauguration are available under the site’s heading ‘Archive’.
Changes for the week of September 5th, 2023………………………
As a subscriber to GaneWisdom/Market Edge you are being given unequalled access to the latest and most comprehensive market analysis available. Please note the following and move accordingly. Please watch for our Mid-Week Market Alerts in the event of shifting market conditions.
Based on our analysis, we are issuing a BUY for the following. Please execute these recommendations before the close of business on Tuesday, September 5th, 2023:
- A portfolio consisting of primarily S&P 500 stocks
- A portfolio consisting of NASDAQ stocks
- A portfolio consisting of Biotechnology
- A portfolio consisting of Electronics
- A portfolio consisting of Technology stocks
Your particular Mutual Funds and/or Variable Annuities may or may not offer all or any of some of the above. You MUST do your homework. Doing so and finding the portfolio in accordance with the above may position you to take advantage of what we believe to be the next market rally.
* As is the case with any investment, use your discretion and judgement before purchasing and/or transferring. Diversification is always prudent; therefore, our suggestion is using a portion of your portfolio and not the total in any one fund or subaccount. A portion should remain in Cash (Money Markets)
Please watch for our Mid-week Market Alerts should there be any.