From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HEALTHY!
We eked out another week of broad-based positive US index returns (i.e., DJIA: +1.19%, S&P 500: +0.79%, Nasdaq: +0.29%). For some reason, US stocks continue to rise in the face of persistent inflation, albeit at a slower pace. It appears that the market is hanging its hat on the hope that the Federal Reserve will start to lower interest rates near the end of 2023. Nonetheless, corporate cost of goods remains high. If corporations cannot raise prices to compensate, profit margins/earnings per share may shrink. As stated in recent Weekly H&Cs, there are several matters to be resolved throughout the next few months—any of which could produce volatility in the US stock market. How should one play it? Click the BlackRock and Northern Trust links below for a few suggestions.
Considering the Fed’s vigilant stance on fighting inflation, the overriding concern postulated every day seems to be whether the US economy will experience a recession or a soft landing. Some would argue that the inverted yield curve (i.e., higher short-term interest rates and lower longer-term interest rates) indicates that a recession is coming. Goldman Sachs’ “The Home Stretch” provides an interesting point of view. See what you think!
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:
Northern Trust:
Goldman Sachs:
Fidelity:
Capital Group:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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