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Recap | Week Ahead | 2023 in a Simple Chart Thumbnail

Recap | Week Ahead | 2023 in a Simple Chart

"The market is rational but investors play different games and those games look irrational to people playing a different game.” – Morgan Housel

Last week's market recap:

  • The S&P 500 closed the week up .89%.  Year-to-date the index is up 9.17%
  • NASDAQ closed the week up 1.28%.  YTD the index is up 17.12%
  • U.S. Aggregate Bond index was up .83% for the week.  YTD the index is up 3.59%
  • 10-Year Treasury Rate decreased, ending the week at 3.44% down from 3.57% the prior week.
    • Fed Funds Target rate is currently 4.75-5.00%
  • The 1-Year Treasury is yielding 4.87%  
  • A 6 Month Treasury is yielding 5.09%  


The week ahead:  

  • Fed Meeting:  Most are expecting a 25bp rate hike.  Their comments will be extremely important. 
  • Jobs Date (JOLTS) 
  • Manufacturing and Services PMIs 
  • Earnings: Apple, Starbucks, Pfizer, Big Energy, etc.

Look at the chart below!   

  • The black line represents the S&P 500 year-to-date return of 5.13% through 4/26/23.
  • The top eight companies (Facebook, Apple, Amazon, Netflix, Google, Microsoft, Nvidia, and Tesla) contributed 5.57% to the overall S&P 500 performance.
  • Meaning… the other 492 companies contributed -.44% YTD return for the S&P 500 (blue shaded portion).

So, what is the chart saying?...

The overall economy is not seeing the same move as the mega-cap profitable Tech.


What this chart isn’t showing?... 

  • Consumer Staples, Industrials and Materials are also positive year-to-date.
  • Financials, and Energy are dragging the “other 492” down the most.


Rolling Recession:  

A phrase being used to describe the current economic environment.  Some areas of the economy are contracting, while others expand.  Different sectors of the economy take turns suffering rather than simultaneously.   


Financial Planning Note: 


What is the current inflation rate for I Bonds?

I bonds Inflation Rate was lowered to 3.38% (1.68% for 6 months).  The Inflation rate changes every six months.  It was recently lowered to an annualized rate of 3.38%.  The good news is this is another sign inflation is easing.  Right now, you can earn more yield in T-Bills!

As always, let us know if you have any questions.



CRA Investment Committee 


Matt Reynolds CPA, CFP®

Tom Reynolds, CPA 

Robert T. Martin, CFA, CFP®

Gordon Shearer Jr., CFP® 

Jeff Hilliard, CFP®, CRPC®

Joe McCaffrey, CFP® 

Phillip Tompkins 

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