PUT IN WORK (10/2/2023)

The stock market had a somewhat tumultuous week as it fought hard to take back some of the gains lost in weeks prior. The Nasdaq (QQQ) managed to scrape back some of those gains, ending the week 0.1% up, while the S&P 500 (SPY) had a much harder time, ending down 0.7%.

For those unaware, the United States government was on the verge of a shutdown just as of yesterday as officials disagreed on the country’s future funding. Thankfully, Congress found equal ground and was able to come to an agreement for the time being. We mention this because it’s had a clear effect on the market, even over the weekend. Upon receiving this news, futures have risen by half a percent, seemingly inching higher and higher. Whether this futures movement will be reflected in the market today is to be decided, but it’s a positive move nonetheless. However, we must remember that the trouble with government funding isn’t over just yet. The bill that was passed is but a temporary solution, so the can has been kicked down the road, so to speak. We’ll have to see if Congress can develop better long-term agreements in the coming month and a half or so.

Another heavy factor in last week’s negative market movement can be attributed to the Fed. It was revealed that we may see fewer cuts in 2024 than previously anticipated, which upset investors. Additionally, treasury yields rose to nearly 4.6%, which certainly didn’t help investors’ anxiety on the matter, with many now realizing that the Fed may very well go through with another rate hike by the end of this year, as mentioned in previous issues. Furthermore, investors have just become weary after the downward movement we’ve seen over the last several weeks, and are likely acting on impulse with the COVID crash in mind. Many are cautious and thus fearful of the bottom falling out from the stock market once more, even if data would suggest that we’re in a much better place than we were years ago. Things have improved tremendously since then, and we’re not worried about such a sudden drop-off in market capital, but it’s always best to be on your toes in times like these. We will be fine.

(Nasdaq ETF (QQQ) price from September 2022 - September 2023 — each candle is 1 week. Chart provided by tradingview.com.)

PORTFOLIO UPDATE

Our stocks ended relatively reasonably flat last week with no standouts. Some inched upward, and some downward, but our portfolio is practically unchanged overall. It’s likely a result of our portfolio being hit a bit harder than the rest of the market in weeks prior. We plan to hold all currently owned stocks for the foreseeable future. As always, thank you for reading, and happy investing.