Expect continued market volatility as reports on earnings and inflation are digested.
- We don’t expect a recession like in 2020, or a repeat of the Great Recession in 2008-09, but the unemployment rate will eventually go up, job growth will go negative, industrial production will fall, and so will corporate profits… In the meantime, before a real recession sets in sometime in 2023 or early 2024, many people will believe the recession is already here. – Brian Wesbury, Chief Economist, First Trust
- The pandemic and unique restart of economic activity brought about a massive re-allocation of resources. During the pandemic, consumer spending shifted to goods and away from services. That propped up goods producers’ earnings. That’s changing, in our view. Goods demand is weakening. Overstocked inventories, from retailers to semiconductor firms, are evidence of that. Meanwhile, spending is returning to services. – BlackRock
- Fed Chair Powell, in a hawkish speech, reiterated that the Fed’s job is to bring inflation down even if it weighs on economic growth and causes labor market weakness. He dispelled any thought of a pause in tightening. – Bob Doll, Crossmark Global Investments.
As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels. Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.