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Recap | Week Ahead | Pullbacks Thumbnail

Recap | Week Ahead | Pullbacks

“Perfect is the enemy of good.” – Famous Proverb

Last week's market recap: 

  • The S&P 500 closed the week down -.23%.  Year-to-date the index is up 7.73%
  • NASDAQ closed the week down -1.15%.  YTD the index is up 7.31%
  • U.S. Aggregate Bond index was up .81%.  YTD the index is down -.50%
  • 10-Year Treasury Rate decreased, ending the week at 4.09% down from 4.19% the prior week
    • Fed Funds Target rate remains at 5.25-5.50%
  • The 1-Year Treasury is yielding 4.97%  
  • A 6 Month Treasury is yielding 5.31%  
    • Short term rates are trending lower.  Reinvestment Risk for short term debt remains elevated.


The week ahead:  

  • CPI (Consumer Price Index) Inflation data
  • The Fed’s “Blackout Period.”  They can’t provide comments until after their March meeting.  
  • Consumer Sentiment Data
  • Earnings: Dollar Tree, Dollar General, Kohl’s.  This will give insight into consumer spending.

 

Inflation Expectations:

February’s CPI data will be released Tuesday, 3/12/24 at 8:30am EST.  

“Economists expect the overall CPI reading in February to show 0.4% growth on a monthly basis, up from 0.3% growth in January, with the annual growth rate holding steady at 3.1%.”  - FactSet’s consensus estimates


Pullbacks:

Equity markets are up over 20% in almost a straight line since late October 2023. During this time, The S&P 500 has been higher without a sell-off of 2.5% or more.  The average intra-year pullback is 14.2%. Equity markets feel slightly stretched and could be due for a sell-off. This would be normal.

For most investors, a pullback should be viewed as an opportunity to add and diversify methodically.  

 

 Source: JP Morgan Guide to the Markets


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® 

Phillip Tompkins, CFP®


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