A good week for the FTSE 100. A GREAT week for TPP.

TPP Weekend?Recap:

It was a good week for the FTSE, so it was a great week for TPP.?

Most of the data we saw last week would have suggested that the markets fall, but they don’t always do what you think they should.

US and French inflation data was higher than expected; UK earnings aren’t cooling as we’d hoped and rose another 8.5% over the last 3 months compared to the same period the year before. On top of this UK GDP fell -0.5% month over month, the ECB raised rates again, and then US PPI increased by 0.7%, the highest level since June 2022 meaning inflation may be on the rise again. Sometimes, the market just does whatever it wants.

The UK economy shrank faster than expected in July, partly due to worker strikes, wet weather, and rising borrowing costs, the Office for National Statistics said. GDP fell 0.5% sequentially, after rising by the same amount in June. However, the rolling three-month growth rate increased 0.2%, thanks to expansions in services, production, and construction.

UK unemployment unexpectedly increased to 4.3% in the three months through July, up from 4.2% over the previous three months. This jobless rate exceeded the 4.1% that the Bank of England had forecast for the third quarter. But total wage growth over the three months through July accelerated year over year to a greater-than-expected 8.5%.

It really didn’t feel like it should have been a good week for the market, however, the FTSE closed 0.6% higher on Friday at a three-month high of 7,720, notching its biggest weekly gain in ten months (3.3%).

You could try and come up with other reasons for the gain, but our argument would be the same one we’ve been talking about for months:?the FTSE is just too cheap.

In Europe, the STOXX 600 Index ended 1.60% higher after the European Central Bank raised interest rates but signalled that borrowing costs may have reached a peak. Better economic data out of China also appeared to lift investor sentiment.

Germany’s DAX added 0.94%, France’s CAC 40 Index gained 1.91%, and Italy’s FTSE MIB tacked on 2.35%.

European government bond yields broadly declined on hopes that the ECB may have finished raising interest rates. Bond yields in the UK weakened after a bigger-than-expected drop in monthly gross domestic production in July.

The ECB raised interest rates for the 10th consecutive time and hinted that it could be nearing the end of its monetary tightening campaign. ECB President Christine Lagarde said a “solid majority” of policymakers had backed the quarter-point hike that took the key deposit rate to 4.0%, a record high. The ECB said that the move meant “interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target.”

Data from the European Union’s statistics office indicated that industrial production in the eurozone weakened by more than expected in July, dropping 1.1% sequentially because of sharp declines in the output of durable consumer and capital goods.

The European Commission cut its forecast for gross domestic product growth in the eurozone in 2023 to 0.8% from 1.1% and projected that the German economy, the largest in the area, would shrink by 0.4%. The EC’s previous estimate had called for Germany’s GDP to expand by 0.2%.

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The major US equity indexes finished mixed, with value stocks leading the market as benchmark West Texas Intermediate oil prices rose above $90 per barrel for the first time since November 2022. Large-cap shares outperformed small-caps.

Technology and growth stocks lagged after Apple’s new product introduction event on Tuesday which featured a price increase on its top-of-the-line iPhone 15. The products received mixed reviews, which also seemed to dampen sentiment toward the technology sector over the course of the week.

However, broad market sentiment received a boost from the largest initial public offering of 2023 as shares of a UK microchip designer started trading on the Nasdaq on Thursday and experienced a first-day price jump.

Wednesday’s release of the eagerly anticipated August consumer price index data showed that the Federal Reserve has made progress in its fight against inflation, but rising energy prices may prompt the central bank to further tighten monetary policy.

The headline CPI numbers showed the largest monthly increase since August 2022, which was the widely expected effect of higher gasoline prices. The core (excluding food and energy) CPI increase was slightly higher than expected, but markets took the news in stride.

Similarly, the August producer price index (PPI) data released on Thursday indicated that headline producer prices climbed more than expected, with core PPI in line with expectations. Retail sales for August were strong, demonstrating that consumers remain willing to spend.

The week’s economic data overall didn’t seem to affect the market’s outlook for the Fed to hold rates steady at its September 19–20 policy meeting.

Japan’s stock markets gained over the week, with the Nikkei 225 Index up 2.8% and the broader TOPIX Index rising 2.9%. Positive Chinese economic data, amid tentative investor anticipation that the country’s stimulus efforts are having the intended effect on growth and markets, supported sentiment. Strength in U.S. stocks and yen weakness, benefiting Japan’s exporters, added to the favourable investment backdrop.

Chinese equities were mixed after official indicators revealed that the country’s economy may have bottomed, although data also pointed to ongoing weakness in the property market. The Shanghai Composite Index ended the week broadly flat while the blue-chip CSI 300 Index gave up 0.83%. In Hong Kong, the benchmark Hang Seng Index shed 0.1%, according to Reuters.

Official data for August provided evidence of economic stabilization in the country. Industrial production and retail sales grew more than forecast last month from a year earlier, while unemployment unexpectedly fell from July. However, fixed asset investment growth missed forecasts due to a steeper decline in real estate investment. New bank loans rose an above-consensus RMB 1.36 trillion in August, up from July’s RMB 345.9 billion. Credit expansion was mostly driven by corporate demand, while household and longer-term loans also grew.

It’s going to be a big one for data in the UK next week.

We’ll have August’s inflation print on Wednesday, followed by the Bank of England’s interest-rate decision the next day.

On top of this we’ll get data on retail sales, Rightmove’s latest report on house prices, an update on consumer confidence and preliminary PMIs for both the manufacturing and services sectors are also due throughout the week.

Junior doctors and hospital consultants will strike in a dispute over pay - the first time the two groups have walked out together in NHS history.

Beyond the UK, we’ll get decisions on interest rates from central banks in the US, Switzerland, Norway, Sweden, and Japan.

We’ll also get the latest updates on the US housing market, including?building permits,?housing starts, and?existing home sales?for August, and the?NAHB’s Housing Market Index?for September.

FedEx, AutoZone, and General Mills will report earnings next week.

Closing Comments:

For quite some time now?we've been saying the 'best is yet to come', and this week was a solid indication of that.

The reason we've been so confident is because many of our 'short term' trades have been performing well as the markets have been gyrating one way and then the other.

However, at the same time- we've been steadily building a decent sized mid term position in the FTSE 100 as it has fallen.

Therefore, we have been anticipating that when the FTSE would bounce back, we'd be very well positioned to take advantage and this is what we witnessed last week.

The FTSE is still substantially below it's highs of early this year, but our average strategy on TPP has now had an excellent year.

Expert traders know that there will be many weeks, months, and quarters where occasionally the trading climate is subdued, but if over the course of the year you catch 3-4 solid movements, it's the difference between a solid year, and a great year.?

Last week could well have been one of those 'waves'.

It's why an experienced trader is always a patient trader.

Our traders are still on the BUY side of the market place at the moment, but many profits have been booked and exposure have been reduced.

If you're frustrated with what many?believe is a stale and outdated wealth management model- then consider arranging a call with our team.

We are also of the opinion that the industry needs revamped, and that wealth and asset managers have no excuses for failing to beat their benchmarks most years.

Investors want more than 4, 5, or?6% per annum, without taking on excessive risk.

Investors are frustrated with the poor performance and excessive fees.

Ladies/Gents -?this is the very reason why we built TPP.

TPP has been built for frustrated investors globally. It's time to empower yourself, and start to beat your benchmark. At TPP we offer a multitude of different strategies and trading techniques- they all have one thing in common.?They are all designed to beat their market benchmark.?Their track records suggest they will do exactly that.? It's time for change.?No more exposure to underperforming?funds, and more exposure to a?marketing beating investment.?

Change how you invest, work with TPP. Don't just hear about the revolution: Join it. Welcome to the future of investing.?