investment management

Back to School – Market Brief August 15, 2022

jim Financial advisor, Investment Management, Market Brief, Retirement Income Planning, Retirement Planning, wealth management , , , , ,
school

With school around the corner, the S&P 500 has retraced more than half its decline since the highs in January. The S&P 500 is now down less than 10% YTD including dividends. U.S. equities rose for a fourth straight week. Boosted by positive inflation news. Last week all indexes finished up. The Dow up 2.99%, S&P 3.31%, and Nasdaq 3.10%.

Last Week

The S&P 500 Index posted the fourth straight week of gains. The index has gained 13.3% since the mid-year mark. A large contrast to the index’s -19.96% return for the first half of 2022. Due to inflation and Ukraine-Russia War, equities have been volatile and experienced challenges for most of 2022. However, last week brought positive news as the year-over-year CPI figure in July and PPI numbers both came in lower than expected. The figures were also lower than the previous month. Investors interpret this information believing that the chance the Federal Reserve might lower their future rate hike response in combating inflation. The release of preliminary August data by the University of Michigan Consumer Sentiment Index also gave stocks a boost. All sectors were in positive territory last week.

Week Ahead

Historically, August’s final weeks are slow as traders squeeze in their final vacations before the kids head back to school. Although the U.S. economic calendar is lighter compared to recent activity, there will be two important releases mid-week. Wednesday’s publication of the FOMC’s July meeting minutes will be reviewed closely as committee members have been publicly pushing back against the perceived dovishness from Chair Powell’s press conference. The retail sales report for July is expected to confirm that consumer spending is weakening as personal savings shrink and credit balances increase. Additionally, Walmart and Target will report earnings after both companies warned last month of decreasing margins and increasing inventories. Other events investors will keep an eye on include housing starts and existing home sales.

Year-to-date index performance; Dow down 7.09%, S&P down 10.2%, and Nasdaq down 16.6% through the close on Friday.

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

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

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.

Conflict Overseas – Market Brief March 28, 2022

jim Financial advisor, Investment Management, Market Brief, Retirement Income Planning, Retirement Planning, wealth management , , , , ,
conflict

Stocks recorded their first back-to-back weekly gains since late January / early February. U.S. equities rose modestly, as strong economic data was checked by geopolitical tensions. Investors’ attention will be focused this week on inflation and jobs data. The Fed is betting on a soft landing for the economy, but the outcome is far from certain.

Last Week – Conflict Overseas Reaches 2nd Month

Last week, the Dow Jones Industrial average was up 0.3%. The S&P 500 was up 1.8%, and the Nasdaq Composite rose 2%. Year-to-date, the numbers are still negative. In housing news, the average 30-year fixed mortgage rate reached a 3-year high of 4.5%. This is boxing out some buyers as new and pending home sales fell in February. Inventory remains limited, keeping asking prices high.

Nonfarm payrolls are expecting to be 450,000 for March, a drop from the 678,000 in February. The unemployment rate is expecting to be 3.7% for February. A slight tightening from the 3.8% the month prior. The consensus sees a slight rise in personal income to 0.5% for February. Personal spending is expecting to show a sharp slowdown at 0.6% in February, versus 2.1% in January. This goes along with inflationary pressures that consumers are feeling, especially elevated gas prices at the pumps.

Federal Reserve Chairman Jerome Powell stated the Federal Reserve will be more aggressive with monetary policy. Key economic data out last week included: New home sales, durable goods orders, and UMich Consumer Sentiment. One significant weekly data point was initial jobless claims which posted at 187,000 for the week ending March 19, its lowest number in 50 years, and a sharp decline versus the week prior of 215,000.

New home sales came in at 772,000 SAAR for February versus a consensus of 825,000 and compared to a revised 788,000 SAAR in January. The final UMich Consumer Sentiment number posted at 59.4 for March, slightly lower than the 59.7 expected. Consumer sentiment of course has pressure from volatile oil prices and the conflict in Ukraine.

The Week Ahead

Key economic data releasing this week include nonfarm payrolls, the unemployment rate, personal income and spending, and Real GDP. In this time of inflation and geopolitical uncertainty, all of this data matters. The Federal Reserve is carefully considering each data point to help decipher the health of the overall economy. The labor market remained strong, with initial jobless claims falling to the lowest level since September 1969.

As the war in Ukraine enters its second month, and with negotiations seemingly at a stalemate, investors’ attention will focus on inflation and jobs data. The Fed is betting on a soft landing for the economy, but the outcome is far from certain. The labor market is tight. The Fed’s preferred inflation measurement, the Core PCE Price Index, is the main event on Thursday, while ISM Manufacturing PMI joins a busy end of the week.

In Europe, Germany will publish preliminary CPI for March along with monthly retail sales and consumer confidence. These numbers have turned pessimistic given the Russia-Ukraine conflict. Year-to-date index performance; Dow down 4.06%, S&P down 4.68%, and Nasdaq down 9.43% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

Erie CO Financial Advisor; investments, wealth management, retirement income planning; Boulder, Broomfield, Louisville, Niwot, 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.

Energy Prices on the Rise – Market Brief March 14, 2022

jim Financial advisor, Investment Management, Market Brief, Retirement Income Planning, Retirement Planning, wealth management , , , , ,

U.S. equities attempted to rally at the end of last week as Russian President Putin claimed some progress in talks with Ukraine. Indexes finished near the lows, extending the 2022 losing streak. Months of anticipation will reveal in the Fed’s interest rate decision this week, the beginning of rate hikes. Surging energy prices and inflation is largely attributable to supply-side challenges, yet the Fed believes the current policy is too loose. The S&P 500 and Nasdaq Composite indexes fell more than 3% last week.

Last Week – Energy Prices

The stock market losing streak continued. The DJIA was down 1.99%, while the S&P 500 was off 2.88%, and the Nasdaq Composite declined 3.53% for the week. On Tuesday, the NFIB small business optimism index for February slipped to 95.7. Lower than January’s reading of 97.1. Small business owners are feeling the impacts of wage inflation and rising fuel costs. On Wednesday, weekly mortgage applications rose 8.5% overall. Both originations and refinancing’s were up in high single digits among rising rates.

energy prices

Weekly initial unemployment claims moved higher on Thursday, to 227,000 from the pandemic low of 216,000 the prior week. The big inflation data last week was the February consumer price index (CPI) report. The all-items CPI rose 7.9% annually, the highest in 40 years. Energy prices soared as the war in Europe continues. The core index, which excludes food and fuel, rose 0.5% monthly and 6.4% annually. The Russian invasion dismissed belief of cooling inflation. The War in Europe has spiked petroleum prices around the world. Wrapping the data week on Friday, University of Michigan consumer sentiment for March slipped below 60 to 59.7. Consumer sentiment reached 10-year lows. On top of inflation concerns, the war in Europe is adding to general geopolitical anxiety.

Week Ahead

The markets may need the Luck of the Irish on Thursday to snap the losing streak. The February Producer Price Index estimates to rise 1.0% month-over-month and 10% annually. The core PPI estimate to rise 0.6% monthly and 8.3% annually. Wednesday retail sales report, expected to rise 0.5% for February after the surprising 3.8% gain for January. Inflation is causing consumers to spend more for less and potentially cutting into savings. Most experts agree the Fed’s hiking path is likely to be slower than previously expected considering the war in Europe. The current reports believe a 0.25% rise in interest rates on Wednesday.

The NAHB housing market index estimate for March is the low 80s, in line with February’s 82. On Thursday, February housing starts are forecast at a 1.700 million SAAR (seasonally adjusted). This would be an improvement from the 1.638 million SAAR for January. Capacity utilization is forecast to edge higher to 77.8% from 77.6% for January. Factories continue to run all-out to address the supply-chain crisis. On Friday, existing home sales report estimated to come in at a 6.17 million SAAR for February. This would be a decline from a 6.50 million SAAR for January.

Year-to-date index performance; Dow down 9.3%, S&P down 11.8%, and Nasdaq down 17.9% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

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.

Invasion Continues – Market Brief March 7, 2022

jim Financial advisor, Investment Management, Market Brief, Retirement Income Planning, Retirement Planning, wealth management , , , , ,

The Russian invasion of Ukraine extended the stock market’s losing streak last week. The invasion intensified, sending global commodity prices soaring and sustaining volatility. Uncertainty is mounting. With the spike in commodity prices, global central banks’ mission to curtail inflation becomes more difficult. For the week ending Friday, Nasdaq fell 2.75%, S&P 500 down 1.24%, and the Dow Jones down 1.23%.

The last two weeks, the world changed. As we watch the horrifying events unfold in Ukraine and the political and economic fallout, it’s hard not to worry. One thing that can help when you feel worried is to identify and take small steps to create positive results. For example:

  • – review your portfolio, we can look for ways to diversify your investments if needed to help reduce risk and renew your confidence that we continue on the path to help achieve your long-term goals
  • – don’t forget about other money deadlines, like your tax preparation for filing this year
  • – take time to recognize signs of burnout and focus on your personal wellbeing

Last Week – Invasion Continues

With geopolitical tensions rising, investors ignored highly positive economic data in the U.S. last week. The S&P 500 hit an all-time closing high on the first day of trading this year. Since then, the index reversed and is down 8.94% year-to-date as of last Friday. Crude oil closed at $115.68 per barrel on Friday, rising 26.30% for the week. Crude hasn’t seen per barrel prices of $100 or more since 2014.

The jobs report released last week showed the U.S. added 678,000 jobs in February, which was well above expectations. The unemployment rate fell from 4.0% in January to 3.8% in February. Slightly above the 3.5% rate from February 2020. Both readings of the February ISM Manufacturing and Non-Manufacturing Indexes continued to indicate expansion. Supply chain issues and labor shortages remain a headwind for both. However, this comes amid strong demand as the economy continues to reopen.

On Wednesday, Federal Reserve Chairman Jerome Powell confirmed rate hikes were coming, while acknowledging uncertainty related to Ukraine. He also said he would support a quarter-percentage-point rate hike at the Fed’s upcoming meeting on March 15-16. This is the Fed’s first rate increase since 2018. Powell also said the Fed will tread carefully given geopolitical turmoil and its uncertain impact on the U.S. economy. The comments all but end speculation that the Fed would raise interest rates by 0.50% at the March meeting. Larger rate hike are not ruled out for future meetings if inflation doesn’t come down from current four-decade highs.

Week Ahead

Uncertainty is only mounting. The spike in commodity prices is making the global central banks’ mission to curtail inflation increasingly more difficult. Inflation data will dominate investor headlines this week. On Tuesday, the NFIB small business optimism index for February is forecast to hold in the high 90’s range. Small business sentiment, already hurt by wage inflation, could worsen as the Ukrainian invasion further pushes up gas prices. On Wednesday, weekly mortgage applications are expected to extend recent declines. Largely thanks to the February surge past 2.0% in the 10-year Treasury yield.

In addition to weekly initial unemployment claims, Thursday brings the consumer price index report for February. The all-items CPI is forecast to rise 0.7% on a month-over-month basis and 7.9% year-over-year. Wrapping the data week on Friday is University of Michigan consumer sentiment. The reading is expected to drop to 61.7 for March from 62.8 for February. The war in Europe adds to consumer worries. Year-to-date, the Dow is down 7.5%; the S&P 500 is off 9.2%. The Nasdaq is now down 14.9% year to date.

Click here if you would like to learn more about your options. And if we can assist you with your wealth management, investment, and retirement planning.

Erie CO Financial Advisor; investments, wealth management, retirement income planning; Boulder, Broomfield, Louisville, Niwot, 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.

Starting Now – Market Brief February 28, 2022

jim Financial advisor, Investment Management, Market Brief, Retirement Income Planning, Retirement Planning, wealth management , , , , ,
Starting Now

Starting now, when is the best time to plant a tree? According to the old Chinese proverb, the best time was 20 years ago, but the second-best time is now. There’s such great wisdom in that proverb when it comes to your financial strategy, especially when you consider the bumpy start the economy has taken so far this year. Volatility can cause anxiety. Maybe you’re worried you aren’t on track for the retirement you envision. Maybe you think it’s too late to start. I’m here to tell you that it’s not. 

Starting Now

Starting now, we can work together on a strategy that puts you in the best path possible to pursue your long-term goals. We can modify our existing strategy to meet new economic realities or as your goals evolve. Starting now, we can build your confidence in the financial future you want for yourself and your family. Let’s keep the conversation flowing, schedule a time to talk, and reach out with your thoughts.

Last Week – Starting Now

The S&P 500 and Nasdaq indexes both gained on the week after being down more than 5% at the week’s lows. The large focus last week was on the Russian invasion of the Ukraine. Despite the invasion and following sanctions against Russia, the Fed is likely to remain focused on inflation, and sticking to the plan to raise rates.

Consumer spending, wages, and durable goods orders all surged higher. Rising home prices and and higher mortgage rates led to a 4.5% decline in new home sales. Pending home sales also dropped 5.7% in January. The Dow down 0.03%, S&P up 0.84%, and Nasdaq up 1.1%.

Week Ahead

Human and economic assessment is taken into account this week. Along with what actions world leaders take beyond the already imposed sanctions against Russia. From the economic standpoint, eyes are on the U.S. employment report coming out on Friday. Over 1.6M jobs have been created the past 3 months despite the impact of Covid variants, and another strong report may put further pressure on the Fed’s tightening schedule.

Year-to-date index performance; Dow down 6.3%, S&P down 8%, and Nasdaq down 12.5% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

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.