From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HEALTHY!
The Federal Reserve’s rising interest rate policy may have paused this week, but stock market momentum continued its upward ascent! All three major US stock market indices posted gains for the week (i.e., DJIA: +1.25%, S&P 500: +2.58%, Nasdaq: +3.25%) with the S&P 500 having its 5th consecutive weekly gain. Currently, the S&P 500 trades at a lofty 19.58X trailing 12 months earnings per share. There are two schools of thought:
- Don’t fight the Fed. In other words, if interest rates move higher, be cautious about the stock market. Or…
- Don’t fight the upward momentum of the stock market (aka further gains from here) even though it may not be supported by company fundamentals.
For more on this diatribe, click the Capital Group link “Fed signals more hikes to come after hitting pause.”
A topic that may “curb your enthusiasm” could be the Asian economic recovery. Even though China has recently reported that they had lifted their Covid restrictions, an ancient Greek philosopher supposedly said, “things are not always what they seem; the first appearance deceives many; the intelligence of a few perceives what has been carefully hidden.” The Northern Trust Asia Economic Outlook could provide some provocative insight.
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.
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
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