Today, you will read, watch, and hear things about the economy that make you feel uncertain. I view the news in terms of how it will impact clients at our firm. For example: The Inflation Reduction Act (passed by the Senate on August 7), has been the latest in a lengthy season of marketplace volatility …
In Times of Uncertainty in the Economy, Do These 5 Things Read More »
Corporate profits, according to the Bureau of Economic Analysis, grew by $20.4 billion in the final quarter of 2021, a 0.7 percent increase. For the first quarter of 2022, corporate profits fell by 2.3 percent or $66.4 billion. On an annualized basis, corporate profits fell 5.2 percent in 2022, but grew 25 percent in 2021. …
Starting June 1, the Fed began reducing its balance sheet holdings of U.S. Treasuries by $30 billion a month for three months. Thereafter, it will double its reduction of U.S. Treasuries by $60 billion per month beginning in the fourth month. For its mortgage-backed securities, the first three months will see $17.5 billion roll off …
How Will the Federal Reserve’s Quantitative Tightening Impact Markets? Read More »
In a holiday-shortened week of volatile trading, stocks surrendered some of the previous week’s strong gains. The Dow Jones Industrial Average fell 0.94%, while the Standard & Poor’s 500 declined 1.20%. The Nasdaq Composite index lost 0.98% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.17%. An Uncertain Market …
With the S&P down nearly 20 percent and the Nasdaq index down nearly 4,000 points since the beginning of 2022, one could say the indices are in a bear market. While we can’t predict the future, economic indicators can offer some insight into the likelihood of the market’s future performance. There are many ways to …
Have the Markets Bottomed or is it a Bear Market Rally? Read More »
At Strothman Wealth Care, we want to make you aware of opportunities that exist both inside and outside of our management. Recently, the U.S. Treasury announced that I-Bonds will pay 9.62% through October 2022 which we believe is very compelling given the challenging start in the markets we’ve seen so far this year. What is …
The Bureau of Labor Statistic’s Consumer Price Index rose by 8.5 percent year-over-year ending March 2022, leading most economists to agree that inflation is going to be with us for a while. With inflation seeming not to abate, at least in the near term, how will different types of investments react to inflation that is …
How Will the Federal Reserve React to Increasing Inflation? Read More »
Stocks spent last week digesting the sharp gains of previous weeks as investors assessed a tightening yield curve, the war in Ukraine, and an uncertain outlook for economic growth and inflation. The Dow Jones Industrial Average slipped 0.12%, while the Standard & Poor’s 500 was flat (+0.06%). The Nasdaq Composite index led, picking up 0.65% …
According to the March 2022 Short-Term Energy Outlook (STEO) from the U.S. Energy Information Administration (EIA), the forecast is for high energy prices in 2022. The report found that Brent crude oil, used as a benchmark ex-U.S., is expected to see prices of $116 per barrel in Q2 of 2022. West Texas Intermediate (WTI), the …
How Will Oil Prices and Consumer Spending Impact Markets? Read More »
War in Ukraine weighed on stocks as investors assessed the economic impact of continued hostilities, expanding economic sanctions, and potentially higher inflation due to rising oil prices and new stresses on the global supply chain. The Dow Jones Industrial Average fell 1.30%, while the Standard & Poor’s 500 lost 1.27%. The Nasdaq Composite index slid …
