Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 2.7%, the S&P 500 was down 2.4%, and the NASDAQ fell 2.5%. Foreign stocks (MSCI EAFE) were also down for the week falling 0.7%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.06%. (Data source: Wall Street Journal)
Shutdown Enters Week 2
The U.S. government shutdown continues as we enter day 13 of the shutdown. This is now the 5th-longest government shutdown that the U.S. has had since 1976. The shutdown has had little impact on markets, and typically this is the case when looking at previous shutdowns. As the shutdown lasts longer, there is a better chance it could have a meaningful impact on the economy and markets. Another impact for markets could be the delay in economic data, which could affect the Fed and its decision to either cut rates or leave them as is.
Friday Volatility on New Tariff Concerns
Markets had been very calm the past few months until new tariff worries rose on Friday with China. We had not had a 1% pullback in the S&P 500 in nearly 50 days, the 13th longest streak in the past 25 years. The worry has seemed to somewhat go away as President Trump said the China situation “will all be fine,” and markets are up in pre-market trading. This will give investors something to keep an eye out for, as markets have seemed to shrug off the tariff worries from earlier this year.
Gold Crosses $4k
Gold has been the top-performing asset class for the year and has now crossed $4k per ounce for the first time ever. Gold is up over 50% for the year and has seen very few bumps along the way. Gold has surprisingly outperformed the S&P 500, NASDAQ, and Dow Jones over the past 5 years despite the bull market we have seen in stocks. (CNBC)
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Quiz
When was gold first used as a currency? (Scroll Down for Answer)
- 1200 BC
- 600 BC
- 300 BC
- 100 BC
Answer:
2. 600 BC. Gold was first used as a currency around 600 BC in Asia Minor when the Lydians in modern-day Turkey minted the first gold coins.
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