"Don’t wait for blue skies before you invest, because stocks will be up 30% before that happens.”
- Jeremy Siegel’s Market Forecast 12/13/2022
Last week's market recap:
- The S&P 500 closed the week up .41%. Year-to-date the index is up 12.82%
- NASDAQ closed the week up .15%. YTD the index is up 27.20%
- U.S. Aggregate Bond index was down -.15% for the week. YTD the index is up 2.01%
- 10-Year Treasury Rate increased, ending the week at 3.75% up from 3.69% the prior week.
- Fed Funds Target rate is currently 5.00-5.25%
The Week Ahead:
- Inflation Data: Consumer Price Index (CPI)
- Fed Meeting: Hawkish Pause or Dovish Hike?
This week’s CPI data and Fed Meeting may set the tone for the remainder of the summer.
- The annualized inflation rate is expected to fall to 4.1% down from 4.9%, and some economists are forecasting annual inflation to fall between 3.7%-3.9%. This would mean a record 11 straight months of headline year-over-year declines.
- On Wednesday, the Fed will issue a decision on interest rates. Most are expecting a pause in raising interest rates, but a potential hike in July shouldn’t be ruled out. Many would call this a “Hawkish Pause.”
Inflation has been going lower and regardless of the Fed’s comments, we’re probably at or near peak interest rates. Volatility may be viewed as an opportunity for both equities and fixed income.
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®
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