"The world is full of foolish gamblers, and they will not do as well as the patient investors." - Charlie Munger
Last week's market recap:
- The S&P 500 closed the week up .83%. Year-to-date the index is up 21.52%
- NASDAQ closed the week up .41%. YTD the index is up 37.76%
- U.S. Aggregate Bond index was up 2.04%. YTD the index is up 2.51%
- 10-Year Treasury Rate decreased, ending the week at 4.22% down from 4.47% the prior week
- Fed Funds Target rate remains at 5.25-5.50%
- The 1-Year Treasury is yielding 5.10%
- A 6 Month Treasury is yielding 5.39%
- The bond market is expecting rate cuts to occur in 2024.
The week ahead:
- Services PMI
- Employment Report
Inflation is cooling, and the bond market is pricing in rate cuts in 2024. (The futures market is predicting a 82% chance of a rate cut by June.) This change in sentiment was a big factor sending equities higher in November. The bond market has been incorrect the majority of the past few years.
Historically, the Fed is slow to move. They were late when it came to raising rates, and they may take longer than many expect to cuts rates. Opportunities remain for patient investors within the dispersion of sectors and asset classes.
Source: Blackrock – Student of the Market
Rest in Peace to a business legend! Charlie Munger has been Warren Buffet's closest partner and right hand man. His humor and wisdom will be remembered!
You don't have a lot on envy, you don't have a lot of resentment, you don't overspend your income, you stay cheerful in spite of your troubles, you deal with reliable people and you do what you're supposed to do. All these simple rules work so well to make your life better." - Charlie Munger
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, CFP®
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