From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HEALTHY!
Sooner or later, after four weeks of gains in the S&P 500, we experienced negative returns in all three of the major US stock market indices (i.e., DJIA: -0.16%, S&P 500: -1.21%, Nasdaq: -2,62%). It appears that rising interest rates (and bond yields) may push down stocks. The current dividend yield on the S&P 500 sits at 1.69% whereas the 1-year US Treasury provides an interest rate return of >3%! No wonder money flows seem to be heading towards US Treasuries. Couple that with slowing corporate earnings growth, and you get US stock market uncertainty and volatility. The ever-evolving question remains whether we are heading towards a recession. A few pundits believe some industries (like retail, mortgage lending and a few others) have already been experiencing recession-like conditions. Click the Goldman Sachs research link below to get their thoughts on what a recession may look like.
Much has been ballyhooed about the recent “Inflation Reduction Act of 2022” legislation signing. You might find more clarification about the bill in the Merrill piece below. 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.
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
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