Market Recap 10-18-2019

| October 18, 2019
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Stocks advanced by 0.63% in the US and by 0.92% overseas. International stocks have been outperforming since mid-August. The graph below charts the ratio of US stocks (VTI) to stocks outside the US (VXUS) and the declining black line shows the outperformance of the international stocks.

The market is expecting another Fed Rate cut at the end of the month, and that is providing support to equities. The Fed also has started to increase the size of its balance sheet, buying $60 billion a month of treasury bills, although they are not calling it quantitative easing. The Fed is buying the bonds to ensure that there is enough money around so that the gears of the banking system can move in sync without crashing, as came close to happening last month in the repo market. 


Provided by:

Bruce Konners, CPA, CFA, PFS

Download the full PDF here.

Past performance does not guarantee future results.

The purpose of this commentary is to provide readers with a summary of recent market and economic news. It is not intended to provide trading advice. Investors should have a long-term plan and should consider working with a professional investment advisor. The statements and opinions expressed in this article are those of the presenter(s). Any discussion of investments and investment strategies represents the presenter’s views as of the date created and are subject to change without notice. The opinions expressed are for general information only and are not intended to provide specific advice or recommendations for any individual. Any forecasts may not prove to be true. Economic predictions are based on estimates and are subject to change.


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