"In the middle of difficulty lies opportunity.” - Albert Einstein
Last week's market recap:
- The S&P 500 closed the week down -1.11%. Year-to-date the index is up 15.59%
- NASDAQ closed the week down -.91%. YTD the index is up 31.12%
- U.S. Aggregate Bond index was down -1.30% for the week. YTD the index is up .77%
- 10-Year Treasury Rate increased, ending the week at 4.06% up from 3.81% the prior week
- Fed Funds Target rate is currently 5.00-5.25%
- The 1-Year Treasury is yielding 5.41%
- A 6 Month Treasury is yielding 5.50%
The week ahead:
- CPI (Inflation Data)
- Consumer Sentiment
- Earnings Season starts up with Big Banks and others (JP Morgan, Citigroup, BlackRock, Wells Fargo, Delta, PepsiCo, United Health, etc.)
Institutional Mid-Year Market Forecasts are all over the map. Short term yields are attractive again. The 1 year Treasury is 5.41%. Intermediate yields are becoming more attractive. The 10 year treasury yield is above 4% again. The futures market is saying, there is a 92% chance the Fed will raise rates again at the end of the month; however, the end of rate hikes seem to be within sight. Fundamentals are mixed. Many Technicals are looking better. Inflation seems to be falling. The labor market is cooling. Geopolitical concerns are always present. This earnings season is expected to be extremely important. This market is NOT boring! Proper diversification remains extremely important as there are opportunities within Equities, Fixed Income, and Alternatives.
Source: * JP Morgan Weekly Update
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®
Source: * https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/weekly-market-recap/?email_campaign=305792&email_job=407162&email_contact=0033a00002Tr5CaAAJ&utm_source=clients&utm_medium=email&utm_campaign=ima-mi-wmr-GFIV-07032023&memid=7220927&email_id=71561&decryptFlag=No&e=ZZ&t=603&f=&utm_content=Downloadnow
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