Energy was the top-performing equity sector in the S&P 500 during the first half of 2022, with a total return of 31.8 percent. Crude oil and natural gas fundamentals were favorable heading into 2022 amid strong demand, low inventories, and limited spare capacity globally. Since the pandemic recovery, demand has exceeded supply for both commodities. Furthermore, Russia’s invasion of Ukraine accelerated the supply constraints resulting in spiking energy prices.
News
Are We in a Recession or Not?
The first estimate of national economic growth, the gross domestic product (GDP), came in this morning at an annualized, quarter-on-quarter growth rate of –0.9 percent. This is better than last quarter’s number of –1.6 percent, but it is still the second quarter in a row of decline. By some definitions, this means we are now in a recession, and you can expect to see that all over the headlines in the next several days.
The Earnings Season: Better Than It Looks?
According to FactSet’s data, the earnings data so far is somewhat disappointing. As of the end of last week, with 21 percent of S&P 500 companies reporting, fewer companies were beating expectations for both revenues and earnings than has been normal. Earnings growth for the quarter is expected to be the lowest since the end of 2020, when the pandemic was really getting going and before the federal stimulus programs hit. Taking those headlines, things look pretty bad.
Fed Preview: How High Will Rates Go?
So, what will the Fed do at today’s meeting? Almost everyone thinks it will raise rates by 75 bps, or three-quarters of a percent. Almost, in this case, means that a minority of people think the Fed will raise rates by more, like a full percentage point. But the takeaway is that everyone does expect rates to go up—and by an amount that, prior to the past couple of months, would have been shockingly large.
Economic Release Snapshot: Housing Sector Slows in July
Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead.
Time to Panic About the Strong Dollar?
One of the headlines I have been asked about recently is the strong dollar. People are concerned about what it means, how it could hurt the U.S. economy, and, of course, how it will affect their investments. Good questions all.
Director of Operations
Ashley has been working in the customer service field since she started her first job at age 16. For the past ten years she worked in an office setting handling accounts payable and receivable as well as some receptionist work. She is very excited to learn more about the investment field.
Alec joined Riverstone after starting out his post college career on the operations side of an international logistics company working as an account executive. Graduating with a BA in Economics from the University of Illinois at Urbana-Champaign, he quickly developed a strong interest in the financial world. A lifetime resident of the Chicagoland area, Alec is an avid fan of his hometown sports teams. He is also an enthusiast of outdoor activities like fishing, camping, and hiking whenever possible.
Carol has a wide variety of experiences and has worked mainly with not-for-profit organizations. She spent 20 years in fundraising and 15 years teaching in the Illinois school system while she raised her younger children. Carol lives in Sugar Grove with her husband, Ron, and their Golden Retriever, Charley. She has four children and two grandchildren. When she’s not working, Carol enjoys spending time with friends and family, running, fishing, bible study, and watching her grandchildren play sports.
Wealth Advisor
Wealth Advisor / Registered Principal
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Wealth Advisor / Registered Principal
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