Coming off the long holiday weekend, the stock market has posted positive gains and the S&P 500 index has reached nearly 2793.
Chinese officials on Friday have extended their stay in the US to continue discussions with the US administration on trade. Both presidents have come out indicating that we may reach a potential deal on trade.
We're pretty optimistic about business strength in the US at the moment.
The business leveraged loan market seems to have almost completely recovered since its October high. Additionally, the US high yield bond market seems to be pretty hot at the moment, passing its October high.
The general takeaway here is that if businesses can borrow money via loans or bonds, investors need to be pretty bullish on these businesses in general. We view this as a pretty positive sign for the business environment in the US at the moment.
Have a great weekend!
Disclosures & Supplement:
The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.
The stock market is in reference to the S&P 500 index. The S&P 500 index posting positive gains was in reference to the Bloomberg ticker SPX Index for the time period of 2/19/2019 – 2/22/2019. The S&P 500 index’s approximate level as of market close 2/22/2019 was also in reference to the same Bloomberg ticker. An index is unmanaged, does not reflect management or trading fees, and one cannot invest directly in an index. Optimism and statements regarding a trade deal between the US and China was in reference to the CNBC article titled, “US, China extend trade talks as Trump and Xi express optimism” by Christina Wilkie. The business leveraged loan market was in reference to the Credit Suisse Leveraged Loan Total Return Index. Recovery data was referenced from the Bloomberg terminal ticker CSLLLTOT Index as of 2/22/2019. The US high yield bond market was in reference to the Bloomberg Barclays US Corporate High Yield Total Return Index. Recovery data was referenced from the Bloomberg terminal ticker LF98TRUU Index as of 2/22/2019.