Stock prices stumbled in February owing to growing worries that the Fed would maintain its tight monetary posture in the face of continuing inflation.
Monthly Economic Update: January
Stocks rallied in January as moderating inflation, a better-than-feared earnings season, and healthy economic data put investors in a buying mood.
What is a Bear Market
For major U.S. stock indexes, a bear market is defined as a 20% decline from its most recent all-time high over a prolonged period of time.
Monthly Economic Update: June
The month began on a solid note as stocks rallied following the Fed’s announcement of a 50-basis-point hike in the federal funds rate. The market was relieved to hear comments from Fed Chair Jerome Powell, who said that a 75-basis-point increase was not actively being considered.
FYI: Gas prices this summer
Americans are already trimming the grocery budget; it now appears the gas budget is next in line.
Monthly Economic Update: April
The month started out with the same anxieties that dragged the stock market lower in January and February: rising bond yields, slowing economic growth, elevated inflation, and Ukraine.
Roller Coaster Market Update
We understand that current events can be a bit overwhelming, and you may feel the need to be proactive. Contact us and we will discuss, but for now we will keep on riding.
February Monthly Economic Update
As investors saw in January, these high-multiple stocks can come under pressure as bond yields trend higher. The reason for this is twofold. First, when rates tick up, it’s more difficult to forecast future earnings. Second, higher rates may increase a firm’s cost of capital.
December Monthly Economic Update
In this month’s recap: Reports of a new COVID-19 variant blindsided markets as a wave of late selling erased the month’s earlier gains.
November Monthly Economic Update
In this month’s recap: Stock prices notched solid gains as a strong start to the corporate earnings season fired up investors.