Stocks Rise with Spending Bill Sign in the Weekly Market Update by Valeo Financial Advisors (February 16, 2019)
February 16, 2019    Disclosures    POSTED IN  InvestmentsEconomyMarkets

The U.S. government will not be falling into another shutdown; President Trump signed a bipartisan spending bill that will keep the government funded through the fall. Inclusive of this spending bill is roughly $1.4 billion for border barriers; because this amount fell short of the President’s desired wall budget, he has declared the 32nd national emergency in effect – likely to face heavy legal scrutiny. Progress was made during trade talks this week between the U.S. and China which has added to investor confidence across the globe. A hint has been given that the March 2nd deadline of a trade truce could be extended.

U.S. stocks posted a strong gain during the week, notching its seventh advance in the past eight. U.S. small company equities led results among other asset classes with an impressive 4.4% weekly return. International developed stocks rose in near lockstep to domestic; however, emerging markets did not fair as well with the index posting a modest decline. Despite the national debt topping $22 trillion this week, Treasury yields have fallen on longer maturities over the past month – moving aggregate fixed income returns higher. Alternative strategies, often used for diversification, also gained with risk assets – led by commodities.

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