Writing this weekly update is starting to get boring, because everything goes up every week, or so it seems.  Having said that, one casualty this past week was gold, which finally seems to have come off the boil.  The price of gold declined nearly 6% on Tuesday, and then stabilised but still ended down 1.8% on the week, the first weekly decline in the price of this safe haven precious metal since mid-August.  All global equity indices were higher (yawn) on the week – most end

It was a slow drift lower in US stocks and bonds this past week, although Friday's PCE (inflation, August) and other economic data was sufficiently balanced to create a slight bounce. Global stocks were mixed, with U.K. and Japanese stocks generating the best returns WoW.

Markets were good again this week, with stocks and bonds both increasing in spite of plenty of economic headwinds on the horizon and growing geopolitical risks. Nothing seems able to stop the momentum......until it does!

The S&P 500 hit another record high, but stock investors reacted poorly to a weaker-than-expected jobs report for August. Bonds rallied, as a slowing US economy portends a weaker labor market and potentially slack demand, setting aside concerns about long-term inflation, at least for the time being. Gold continued on its tear.

Markets largely slid sideways in the usually quiet end of the month of August. There was news though, including the last of Mag 7earnings (NVDA), political turmoil in France, PCE for July, and th usual list of Trump matters.

U.S. stocks hit record highs mid-week for two days running, but softened after worst-than-expected PPI data and eroding consumer confidence, released Thursday and Friday, put a dent in the animal spirits driving risk assets higher. UST yields rose, remaining stubbornly high and not very connected to what the FOMC might or might not do at the next FOMC meeting.

The bottom line is that global stocks ended at or near record highs again, with US Treasury yields slightly higher. The BoE – after a struggle – managed to lower its policy rate. Fitch published an interesting article on tariffs, Apple CEO Tim Cook met with the president, and the recent Pivot podcast interview with Anthony Scaramucci is very interesting.

Concerns regarding tariffs and trade rhetoric faded a bit in the second half of the week in the U.S., which gave way to decent economic data and a strong start to the earnings season. The S&P 500 and NASDAQ hit record highs (again). Yields were under modest pressure at the long end of the curve.

I continue to believe that inflation will be transitory, but supply-push inflation will cause inflation to be higher longer.