Weekly Market Pulse: On The Road Again

2025-05-12 05:06:00 ET

Summary

• After weeks of negotiating, the Trump administration announced a trade deal with the UK last week.
• The dollar remains in a short-term downtrend but appears to be setting up for a countertrend rally. First resistance is around 102.5 and further resistance comes in at about 104, but so far, the rebound attempt has been pretty feeble.
• A very mixed week for markets, with large cap stocks down a little and small/mid-cap stocks up a little.
• Credit spreads continue to narrow after the recent spike. But while stocks have fully recovered, spreads have not, gaining back about half the widening seen after “liberation” day.

“Our freedom of choice in a competitive society rests on the fact that, if one person refuses to satisfy our wishes, we can turn to another. But if we face a monopolist we are at his absolute mercy. And an authority directing the whole economic system of the country would be the most powerful monopolist conceivable…it would have complete power to decide what we are to be given and on what terms. It would not only decide what commodities and services were to be available and in what quantities; it would be able to direct their distributions between persons to any degree it liked.”

? Friedrich August von Hayek, The Road to Serfdom

Read the full article on Seeking Alpha

For further details see: