The U.S. economy has seen a significant normalization in labor demand since the pandemic. Last week’s JOLTSreport showed 8.9M job openings in January 2024, a 27% fall from the peak of 12.2M openings in March 2022. With theeconomy expected to soften further this year, labor demand in most sectors will continue to moderate.… Read More
The Federal Reserve has been in the headlines a lot lately as analysts try to figure out when policymakers will cut interest rates.
Why does the Fed matter so much?Let’s discuss.(Not interested in a quick econ lesson? I’ve got you covered.… Read More
Curious how the 2024 election will affect the stock market?How are you feeling about this year’s elections?If the thought of it makes your heart beat faster––you’re not alone.Most United States residents across party lines experience major stress around presidential elections.1And recently, that stress has skyrocketed.In… Read More
Given high short-term yields, many investors seeking income have recently piled into cash. Others, however, havebeen attracted to high yield (HY) bonds, given yields of close to 8% in a falling inflation, steady growth environment.
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weekly_market_recap-03-04-2024
Market expectations for Fed policy have swung dramatically over the past few months, from the higher-for-longer narrative to expectations of aggressive policy easing. With stronger-than-expected jobs and growth data this year and inflation still mild, investors have had to reassess their outlook for policy rates.… Read More
Last week’s January CPI report came in above expectations, with headline CPI rising 0.3% m/m and 3.1% y/y. Shelterprices, which increased 0.6% in January, accounted for over 2/3 of the monthly increase in headline CPI.
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weekly_market_recap-02-19-2024
Market Rollercoaster
The S&P 500 broke the 5,000 level recently for the first time in history as investors embraced euphoria and rallied.1 And then tumbled as investors got jittery.2 Then yo-yo’d a bit more. What’s going on? Let’s talk about investor psychology.… Read More
Inflation is often feared to be a self-fulfilling prophecy, as consumers and businesses that expect higher prices mayinadvertently fuel inflationary pressures themselves. For example, consumers may ask for a raise or accelerate purchases to front-run rising prices, while businesses may hike prices in anticipation of higher input costs.… Read More
Last week, the Middle East conflict escalated with the tragic attacks on U.S. troops and more threats on ships in the RedSea. Along with causing more volatility in oil prices, the conflict is negatively impacting global maritime trade. Just inthe past two months, traffic through the Suez Canal, which handled 12-15% of global maritime trade in 2023, has beenreduced by 42% according to the UN.… Read More
After a two-year stretch marked with significant uncertainty, the S&P 500 overcame the “wall of worry” about a potentialhard landing for the U.S. economy, achieving a new all-time high on Jan. 19 and notching successive highs for fivestraight days last week.… Read More