Market Gains on Lesser Inflation in the Weekly Market Update by Valeo Financial Advisors (May 12, 2018)
May 12, 2018    Disclosures    POSTED IN  InvestmentsEconomyMarkets

Consumer and producer price numbers came in softer than expected reassuring investors that the Federal Reserve may not need to accelerate its pace of interest rate increases. Friday President Trump gave a highly anticipated speech about drug prices and the unveiling of new measures to control them, which ended up having little effect on healthcare stocks after an initial price decline. June 12 in Singapore will be the date and location of the President’s meeting with North Korean leader, Kim Jong Un, with hope to denuclearize and stabilize the Korean Peninsula.

U.S. stocks posted a seven day winning streak bringing a volatile 2018 back into positive territory; technology shares rallied, and the recent rise in oil prices has lifted shares in energy companies. International equities also gained during the week although not quite as heavily. A recent run up in the U.S. dollar and increased domestic rates are putting pressure on emerging market debt as market participants reevaluate the additional risk in these investments. But as U.S. rates climb, everyone’s eyes will be on the lookout for the infamous “inverted curve” which is widely considered a precursor to recession.

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