From the desks of Stanley Katz & Lauren Madera
HAPPY FATHER’S DAY TO THOSE OF YOU CELEBRATING!
Yesterday, I went to the Cubs game with my grandson. As each batter came to the plate, I looked at the scoreboard to see their batting average year-to-date and how that compared to current game performance. Truthfully, it reminded me of the US market indices’ performance these past few weeks. Both the S&P 500 and Nasdaq have suffered losses 10 of the past 11 weeks while the DJIA has now been down 11 of past 12 weeks. Last week (i.e., DJIA: -4.83%, S&P 500: -5.80%, Nasdaq: -4.82%) was the worst carnage since March 2020. On Wednesday, the Federal Reserve raised the Fed Fund rate by 0.75%, the largest one-time increase since 1994. With inflation raging, raising rates generally has been one of the best tools to slow the economy down. Interestingly enough, many stock market analysts still project corporate earnings to grow 11% in 2022. So as painful as the stock market slide may feel, certain stocks cost less now relative to their earnings, which may create opportunities. Take a look at the Schwab Market Perspective “Price Shock” link below for more insight.
Pending recession seems to be on the minds of many investors, and rightfully so. Several industries such as housing and retail have already headed that direction. As in the stock market, there may be more pain in front of us, but the worst could be over. The BlackRock Weekly Commentary below could provide some strategic thoughts. Click it!
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.
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
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