From the desks of Stanley Katz & Lauren Madera
STAY SAFE AND HEALTHY!
It was another difficult week for the major US stock market indices (i.e., DJIA: -2.91%, S&P 500: -3.04%, Nasdaq: -3.82%). Make that 8 weeks in a row of drawdowns for the DJIA and 7 straight for the S&P 500. Since the all-time highs on January 3, 2022, the S&P 500 is -18.7% but hit bear market territory (that is, -20%) on Friday. The Nasdaq sits -28.2% from its high. The blame rests on the shoulders of rising interest rates and inflation. This past week, companies like Wal-Mart and Target reported earnings indicating the consumer remains steadfast in their shopping habits but costs like wages and transportation have eaten into profits. Thus, their share prices, like many others, stumbled. The persistent themes from the analyst community are the possibility of a recession and the Federal Reserve’s resolve to raise interest rates to combat inflation. Schwab posted their view — “Signs Point to Rising Recession Risk” — in the link below.
Throughout the past several weeks, many commentators have referenced the recent inflation figures relative to 40-50 years ago, especially as it relates to rising energy prices. For those of us old enough to remember, the current inflationary pressures don’t seem to resemble times of yore! For more insight on this topic, click the T. Rowe Price link below.
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:
T. Rowe Price:
BlackRock:
Vanguard:
Northern Trust:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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