From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
For the second week in a row, all three of the major US stock market indices posted losses (i.e., DJIA: -2.14%, S&P 500: -2.53%, Nasdaq: -2.62%). The good news is that the economy continues to rock on. 3Q2023 GDP (gross domestic product) grew at 4.9%. The bad news is that, although the Fed may hold rates steady at their meeting next week, their resolve may still be to slow economic growth and rein in inflation towards their 2% target. Look at the Capital Group’s article, “Fed’s 2% inflation target could be delivered early,” for more insight.
3Q2023 corporate earnings announcements continue to meet or slightly beat expectations, but the S&P 500 price-to-earnings ratio now trades at a lofty 18.31X. The market has recognized the high price for stocks. Short-term US Treasury rates remain at an elevated 5%+ level, which continues to pose challenges for the US stock market. Bonds now have a place in portfolio allocations. In recent weeks, both the S&P 500 and Nasdaq have sold off near the precipice of correction territory, down 10%. BlackRock’s Weekly Commentary sheds some light on this topic.
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.
Capital Group:
BlackRock:
Zacks:
Putnam Investments:
Parnassus Funds:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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