From the desks of Stanley Katz & Lauren Madera
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So far, so good! Or is it too good to be true? All three major US stock market indices were in the green for the week (i.e., DJIA: +1.80%, S&P 500: +2.46%, Nasdaq: +4.32%), putting the year-to-date returns at +2.51%, +6.02% and +11.04%, respectively. 2022’s tech wreck must have gone to the repair shop over the holidays! Right now, the S&P 500 is trading at a lofty 17.9x 2023’s expected earnings even though quite a few companies are projecting lower future earnings. BlackRock’s commentary “Market view too rosy — for now” provides some interesting insight. Click the link below.
As the Federal Reserve prepares to meet this week, both the stock and bond markets anticipate a Fed Funds rate increase of 0.25% (aka 25 basis points). That would be lower than the 0.50% hike in December 2022 and four straight 0.75% hikes in June, July, September, and November 2022. No question, the economy has been slowing. But you wouldn’t know it by the employment and consumption statistics or the stock market’s reaction. Take a look at the Goldman Sachs Top of Mind research piece below. It tells a tale.
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.
BlackRock:
Goldman Sachs:
Northern Trust:
J.P. Morgan Asset Management:
Capital Group:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
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