Recap | Week Ahead | Duration
"Treasury Bills (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less." – Investopedia
Last week's market recap:
- The S&P 500 closed the week up 1.41%. Year-to-date the index is up 3.73%
- NASDAQ closed the week up 1.67%. YTD the index is up 13.15%
- U.S. Aggregate Bond index was up .52% for the week. YTD the index is up 3.44%
- 10-Year Treasury Rate decreased, ending the week at 3.38% down from 3.39% the prior week.
- Fed Funds Target rate is 4.75%
- The 1-Year Treasury is yielding 4.50%
- A 6 Month Treasury is yielding 4.83%
The week ahead:
- PCE Inflation
- Personal Income and Consumer Spending
- Home Prices
Quick Comments:
Last week, the Fed raised rates an additional 25bp; however, they gave a dovish forward guidance meaning an end to the hiking cycle may be near. The bond market is pricing in potential rate cuts as soon as June. Rate cuts would probably mean extreme volatility has occurred and the Fed needs to step in to help. A pause in rate hikes would most likely be the best scenario for markets.
Diversification should help in 2023. Quality remains important. Bonds can once again provide portfolios with attractive income and potential capital appreciation when the Fed eventually pauses or cuts rates.
As always, let us know if you have any questions.
Best,
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®
* https://www.pacificfunds.com/extra-credit/mar-20-to-mar-24-2023
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