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.
Schwab:
BlackRock:
Northern Trust:
Capital Group:
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. ClientFirst Financial Strategies, Inc. is a DBA of OneSeven, LLC (OneSeven). OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Securities offered through Fortune Financial Services, Inc. (Fortune), Member FINRA/SIPC. OneSeven and Fortune are separate entities. Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.
OneSeven and Fortune do not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third parties.