My colleague Sam Millette, director, fixed income on Commonwealth’s Investment Management and Research team, helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam! Let’s take a closer look.
September 6, 2023
My colleague Sam Millette, director, fixed income on Commonwealth’s Investment Management and Research team, helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam! Let’s take a closer look.
September 5, 2023
U.S. indices were down by low single digits in August, with the Nasdaq doing the worst. International markets pulled back, and fixed income was down. This market performance reflected the underlying economy. Business and consumer confidence slowed, while inflation showed signs of ticking up again.
September 1, 2023
With the end of summer drawing near, it has been a busy couple of weeks. We had the Fed’s annual conference in Jackson Hole and a whole bunch of economic data, including a new inflation release and the jobs report this morning. When we last talked, the markets were selling off. So, let’s look at where we are now and what mattered in the past couple of weeks.
August 23, 2023
My colleague Sam Millette, director, fixed income on Commonwealth’s Investment Management and Research team, helped me put together this month’s Market Risk Update. Thanks for the assist, Sam! Let’s take a closer look.
This has been a busy week, with a number of developments that, at first glance, seem concerning. But how worried should we be? Let's get right to what mattered.
August 16, 2023
My colleague Sam Millette, director, fixed income on Commonwealth’s Investment Management and Research team, helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam! Let’s take a closer look.
August 11, 2023
Once again, this week was all about inflation—and the data was more mixed this time. Most of the news was good, as core inflation continued to tick down, while the monthly figures were in line with expectations. But the year-on-year headline number rose for the first time in months. It didn’t rise by a lot, only 0.2 percent. Still, that wasn’t a drop. It also raises the possibility that inflation could be bouncing back. Spoiler alert: I don’t think so.
August 10, 2023
This morning’s inflation data came in pretty much in line with expectations. Headline inflation was up 0.2 percent for the month and 3.2 percent for the year. Core inflation (excluding energy and food) was up 0.2 percent for the month and 4.7 percent for the year. So far, so good. At 0.2 percent per month, that would mean an annual inflation rate of between 2 percent and 3 percent. Pretty good, yes?
July was another good month for stocks across the board. The U.S. indices were up in the low single digits, while international markets also did well. Riskier investments like the Nasdaq and emerging markets did best. Fixed income, on the other hand, was much weaker for the month as interest rates rose and the Fed hiked base rates. Financial markets were clearly in a risk-on mode and benefited from riskier investments like tech stocks at the expense of more boring ones.
There was really only one thing that mattered this week: the economy kept growing. I should probably also mention, of course, that the market took a hit. But, as we will see, that likely doesn’t matter. Let’s get into it.
Fed won't cut rates the way the market expects: Brad McMillan. [video]
Fox Business, 01/25/2024
5 things to know before the stock market opens Tuesday.
CNBC, 01/23/2024
Wall Street celebrates record highs for stocks as 2 of the 3 major indexes hit new peaks, and some analysts see room to run.
Yahoo! Finance, 01/19/2024
November jobs data: Strategist eyes Treasury yield movement. [video]
Yahoo! Finance, 12/8/2023
When Will the Fed Cut Interest Rates? Predictions for 2024.
Money, 11/26/2023
The information on this website is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.
Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets.
The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. All indices are unmanaged and investors cannot invest directly in an index.
The MSCI EAFE (Europe, Australia, Far East) Index is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of 21 developed market country indices.
One basis point (bp) is equal to 1/100th of 1 percent, or 0.01 percent.
The VIX (CBOE Volatility Index) measures the market’s expectation of 30-day volatility across a wide range of S&P 500 options.
The forward price-to-earnings (P/E) ratio divides the current share price of the index by its estimated future earnings.
Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided on these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption by Commonwealth of any kind. You should consult with a financial advisor regarding your specific situation.
Member FINRA, SIPC
Please review our Terms of Use.
Commonwealth Financial Network®