From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HEALTHY!
Slowly, oh so slowly, the three major US stock market indices kept marching upwards this week (i.e., DJIA: +0.86%, S&P 500: +0.87%, Nasdaq: +1.28%). Since the January breakout rally, the US indices have trended sideways for the most part. Approximately 60% of the returns of the S&P 500 have been generated by those five ever-present big tech names: AAPL, MSFT, NVDA, META, AMZN. The stock market has rewarded those companies that have reined in their spending, thus producing nice earnings. On the other hand, it appears to be ignoring prospects for growth. That could be the tale for the market as the US economy slows. So what does the stock market foretell? Click the Capital Group link for some thoughts on “Why the next economic recovery may be stronger than expected.”
The highly anticipated May meeting of the Federal Reserve will occur this coming week. Most economist expect a 0.25% rate increase in the Fed Funds rate. However, a dissenting group prefers to see the Fed pause at this juncture. As previously stated, many parts of the economy are slowing, but employment, wages, and inflation remain high. Northern Trust provides a plausible explanation for what to expect from the Fed. 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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