Interest rates, inflation and earnings; which will drive the market? And in what direction?
- The Fed is likely to pause at the June FOMC meeting. While further rate increases are possible later this year, we only see them occurring if core inflation starts to inflect higher. – Bob Doll, Crossmark Global Investments.
- Weighed down by high inflation and rising interest rates, the U.S. economy is expected to contract by 2% in 2023, says economist Jared Franz. Key for investors is that stocks have tended to rebound before the economy, with the strongest gains often immediately following a bottom. – Capital Group/American Funds
- The end of the 1Q23 earnings season is approaching, and results continue to look better than expected. …So far, 69% of companies have beaten earnings expectations, while 66% have beaten revenue expectations. – J.P. Morgan
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.
Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified. This content is not intended to be tax, legal, investment or fiduciary advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. Past performance does not guarantee future results.