From the desks of Stanley Katz & Lauren Madera
STAY SAFE AND HEALTHY!
If you look at the theory of relativity, then last week wasn’t so bad! Yes, all three of the major US stock market indices were down (i.e., DJIA: -0.20%, S&P 500: -0.20%, Nasdaq: -1.54%). However, on a relative basis, it wasn’t as bad as the past several weeks! “Who cares about the relatives. We don’t want the market to go down at all!” When interest rates rise and company earnings decelerate (not recess), then stocks may adjust / correct. In the not too distant past, when stocks went down, buyers were there to support the market. As stated in recent Weekly Highlights & Commentaries, money tends to flow away from stocks when “safe money” generates a return greater than the dividend yield on the S&P 500. For reference, “safe money” currently offers ~3% versus 1.37% dividend yield on the S&P 500. Take a deeper dive by clicking the Schwab “Stock Market Volatility: Schwab’s Quick Take” link below.
Because the Federal Reserve Open Market Committee met this past week, most of the analyst insights revolved around future interest rate hikes and inflation. We found the Franklin Templeton article titled “Colliding demand and supply shocks” a very interesting read. Click the link below to expand your thoughts beyond the myopic views of just the United States and what is happening here.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Schwab:
Franklin Templeton:
Goldman Sachs Asset Management:
Northern Trust:
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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