Stocks continue to grind to new highs as it seems like any sell-off has been met with significant buying. Last Friday’s market activity was a great example, as the market shook off early declines to end the trading day higher. Bonds also rallied last week as the odds of a Federal Reserve (Fed) interest rate increase in March has fallen to below 40%. The market seems to be pushing the Fed to not increase rates in March, despite the recent comments by key Fed officials.
The week ahead will have all eyes focused on Washington, particularly ahead of Tuesday's speech by President Trump to a joint session of congress. Expect the President to lay out his proposals for the economy.
I continue to expect stocks to be well-bid in the near term and interest rates will reverse their most recent rally. Penn Mutual Asset Management’s Chief Investment Officer Mark Heppenstall will be live on CNBC’s Power Lunch today at 2:00 p.m. ET sharing more on our team’s current market outlook.
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