From Halloween to Fall Back – Market Brief Nov 1, 2022

With Halloween behind us, I wanted to share some updates that I thought you’d enjoy. A mix of timely information about what is going on right now. Halloween is unique in that it’s filled with sights and sounds that try to tempt our fear. Sometimes it make us feel uncomfortable or afraid — with much of it staged. 

It reminds me of the acronym F.E.A.R.: False Evidence Appearing Real. Be on the lookout for F.E.A.R. because, while fun on Halloween, it has no place in your financial strategy. With the right planning, we can help put you on a well-lit path moving boldly toward your long-term goals. Even amid troubling economic changes. As always, I’m right here with you through it all.

The next big event coming up is when we fall back an hour. Are you planning on sleeping away the extra hour you gain during daylight saving time this weekend? If so, you’ve made a fantastic choice. Getting enough sleep is a key principle to enjoying good mental and physical health. According to the New York Times, more than a third of Americans are sleep-deprived, which can have detrimental effects on mood, memory, and health. Quite often, it’s the little things that we do that can make the biggest impact in our lives — particularly when it comes to our health — be it mental, physical, or financial.

The following market brief provides high level review of what happened last week, and what to expect the rest of this week.

Last Week. Despite disappointing earnings reports from large-cap technology companies, U.S. equity indexes finished higher after a stronger-than-expected GDP report. A modest deceleration in wage growth is positive but will not change the Fed’s path on rate hikes. The underlying picture highlighted slowing economic trends in key areas like consumer spending and investment. The S&P 500 Index rose nearly 4% solidifying two consecutive weeks of recovery from lows earlier in the month. The index currently sits almost 9% above the most recent bear market low. October finished as another whipsaw month returning nearly 9% as four of the last six months have seen the index move up or down greater than 8%.

Consumer confidence fell to a 3-month low in October as inflation and the economic outlook weighed. Sharply rising mortgage rates have crushed the housing market, as new home sales plunged 11% Month-over-Month in September and pending sales sank 10.2%. Home prices have started to come down but not nearly enough to offset higher borrowing costs.

This Week. A busy week looms with the U.S. jobs report due on Friday. A growing economy and continued low unemployment data leave the Federal Reserve primed to raise interest rates to fight inflation. A fourth straight 75bps lift from the Fed is priced into the markets. Investors will watch how Chair Powell might try to lay the ground for a change in pace going forward. Earnings season is winding down, but a handful of key releases will likely confirm slowing economic conditions. Year-to-date index performance; Dow down 9.57%, S&P down 18.15%, and Nasdaq down 29.04% through the close on Friday.

Investing in yourself isn’t indulgent — it’s mission-critical during these turbulent times. Please reach out if you feel inspired by what you’ve read or if I can be of further assistance in your financial strategy and goals. Hope you has a fun, safe Halloween. Have a great week.

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Financial Advisor Erie CO focus on investment and wealth management, retirement planning; Boulder, Louisville, Niwot, Lafayette, Windsor, Berthoud, CO

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.