Carlsquare weekly market letter: Can Junk lead the way?

Read the weekly market letter here:

Carlsquare Weekly market letter

• In line with our expectations, equities performed poorly in February. With that month out of the way, we start today on a fresh note as we move into March. Friday’s US jobs report will be exciting as a stronger USD weigh on equities.
• The junk bond market, as reflected in the traded ETFs HYG and JNK, tends to be a good signal for the stock market. HYG is in an uptrend. If this continues, the general market can follow!
• The chart below illustrates the seasonality of the market (S&P500 index). February is usually a weak month. This is probably because the reporting season dries up in the latter part of the month. As spring arrives with fresh air and blue skies, March-April and May are stronger. With the Q1 reports in April-May, some reality comes back, and the stock market tends to slow down again.

Disclaimer:

The information in this presentation is based on what the publisher, Carlsquare, believes to be reliable sources. However, we cannot guarantee its content. Nothing in the presentation should be construed as a recommendation or solicitation to invest in any financial instrument, option or the like. Opinions and conclusions expressed in the presentation are for the recipient’s use only. The contents may not be copied, reproduced, quoted, or distributed to anyone else. Carlsquare shall not be liable for any loss arising from any decision taken based on the information contained in this presentation. Past performance should not be taken as an indication of future results. Changes in foreign exchange rates may affect the value, price or income of an investment made abroad or in a foreign currency.

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